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Competition Commission ‘to focus on BAA’s customer service’ – 9 Aug 2007

The Competition Commission is seeking fresh submissions from airlines, consumer groups and other bodies as part of its investigation into airport operator BAA, saying it will focus on the group’s customer service.

But the commission’s announcement that it has reached no preliminary conclusions about the UK airports market will disappoint carriers. Airlines have been demanding the break-up of BAA, blaming its monopoly position in London for queues and delays at Heathrow, Gatwick and Stansted.

The chairman of the inquiry, Christopher Clarke, said: “We are well aware of the concerns expressed in the media and elsewhere over the operations of BAA’s airports.”

BAA insists lack of capacity is the source of the problem, not its ownership of the airports. Chief executive Stephen Nelson said: “The problems of congestion and delay have their roots in lack of terminal and runway capacity.

“We have tabled ambitious plans to transform our airports and are willing to spend heavily. London airports do not need structural changes that will delay the delivery of investment.”

BAA’s control of the three London airports gives it a 90% share of passenger traffic in the south of England. It also owns Glasgow, Edinburgh, Aberdeen and Southampton airports.

It was bought by Spanish group Ferrovial for more than £10 billion in June last year and referred to the commission by the Office of Fair Trading in March.

The commission is expected to publish preliminary findings next summer, but may not submit a final report until March 2009. However, it is due to issue a report on the charges airports levy on airlines by the end of next month.




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