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22.04.2008 11:30 - category: World News : BBC News
- Source: BBC News Please turn on JavaScript. Media requires JavaScript to play. BAA chief executive: 'We need to get better' BAA's ownership of seven UK airports "may not be serving well the interests of either airlines or passengers", the Competition Commission has said. The commission's "emerging thinking" report said that BAA, "dominates the airports markets in the south-east of England and in lowland Scotland". Its next report in August may call on BAA to sell one or more airports. BAA owns Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Southampton and Aberdeen airports. 'Lack of responsiveness' BAA is itself owned by the Spanish company Ferrovial. The Competition Commission stressed that it had not yet reached any conclusions but added that it would set out its remedies to any competition problems in August, "whether requiring the sale of one or more of BAA's airports or otherwise". "We are particularly concerned by its (BAA's) apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers," said Christopher Clarke, chairman of the BAA airports inquiry. Mr Clarke was also worried that having so many airports owned by BAA meant that big development projects were being carried out one at a time. BAA responds BAA welcomed the Competition Commission's report. But its chief executive Colin Matthews, who took over on 1 April, disputed the suggestion that the sale of some of BAA's airports would improve capacity. "The case they need to make is that new ownership will deliver investment more effectively," he told the BBC. "I'm not convinced that's the case," he added. Mr Matthews yesterday restructured his management team to concentrate more on the operational performance of Heathrow. "We can improve Heathrow operations and we must improve Heathrow operations, and that's exactly why I've restructured the business to focus on exactly that issue being our top priority," he said. "My own view is that if we don't operate Heathrow effectively then, as it were, we won't have a leg to stand on in these important strategic long-term issues." Airport capacity The Competition Commission said that the point of giving BAA ownership of Heathrow, Gatwick and Stansted after privatisation in 1987 was to make sure there would be adequate airport capacity in the south-east of England, but that there was still a shortage of capacity. The regulator conceded that competition in the south-east of England was unlikely in the short term because of the lack of capacity, but suggested that having airports separately owned could help to encourage growth in capacity. It also said that there was potential for competition between Heathrow and Gatwick airports and Southampton. In Scotland, the report said there was potential for competition between Edinburgh and Glasgow airports, although the ownership of Aberdeen airport was less of an issue.www.free-voipservice.net
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