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SPAA complains to OFT about BAA ‘monopoly’ – 8 Mar 2007

The Scottish Passenger Agents’ Association has written to the Office of Fair Trading claiming Scottish travellers get a raw deal because of a monopoly of airport ownership.


SPAA president Sandy MacPherson said due to BAA’s ownership of Glasgow, Edinburgh and Aberdeen airports, it controls 80% of the country’s flight market, while 71% of all passenger traffic is through Glasgow and Edinburgh alone.


He added this means inflated charges and poorer standards of service, largely to the lack of any competition.


In his letter, MacPherson said: “Competition is what this industry thrives on; the challenge to attract customers and guarantee repeat business ensures we do not rest on our laurels and deliver mediocre services.


“Yet the impetus to continuously improve the customer experience, be it through reduced air fares or more efficient security procedures, disappears when the traveller has no viable alternative.”


MacPherson said BAA’s domination north of the border means charges for domestic flights, which are included in the cost of the air ticket, are £9.53 at Aberdeen and £8.05 at Glasgow and Edinburgh, compared with £4.98 at Gatwick.


He added BAA has shown it is prepared to compete when it has to. Following the launch of low-cost services at non-BAA owned Prestwick airport, charges were cut at nearby Glasgow airport.


Meanwhile, Scottish Tourism Minister Patricia Ferguson is backing the SPAA’s fight to force IATA to allow Scottish agents to make their BSP payments on a monthly basis like the rest of the UK, as opposed to twice a month.


Scottish agents say the law north of the border puts them at a disadvantage compared with agents in England who do not have so many financial constraints.


MacPherson said: “We are delighted a member of the Scottish Executive is writing on our behalf about this matter. It shows we are not just a moaning trade body and proves our efforts to lobby the Scottish Parliament are paying off.”

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