BAA ordered to sell 3 airports

London - Britain's anti-monopoly agency on Thursday ordered BAA to sell Gatwick and Stansted airports near London and one of its major Scottish airports.

The ruling by the Competition Commission affirmed its preliminary announcement on August 20 that it wanted BAA to shed two London airports and either the Glasgow or Edinburgh terminals in Scotland.

BAA has already put Gatwick, Britain's second-busiest airport, up for sale but had resisted selling Stansted, a base for low-cost regional airlines

BAA said it believed the commission's decision was flawed, but gave no further indication about how it intended to respond.

"We accept the need to change and, having reorganised to improve customer service and having initiated the sale of Gatwick, BAA is already changing," said BAA, which is owned by a consortium head by Grupo Ferrovials of Spain.

"However, we believe the Commission's analysis is flawed and its remedies may be impractical in current economic conditions."

The commission said BAA must complete the sales within two years: Gatwick first, then Stansted, then either Edinburgh or Glasgow.

It said the common ownership of the big London airports and Scotland's two biggest facilities precludes any competition.

"Given the nature and scale of the competition problems we have found, we do not consider that alternative measures, such as the sale of only one of the London airports or greater regulation, will suffice," said Christopher Clarke, who chaired the commission's inquiry.

"We are confident that the sale of these airports will bring substantial benefits to passengers and airlines. We expect that the new airport owners, with the operating capabilities and financial resources to develop them as effective competitors, will have a much greater incentive than BAA to be more responsive to their customers."

- AP