BAA break-up 'would help passengers'
BAA break-up 'would help passengers'
Passengers could find flying costs them less in future, with a new report indicating that the break-up of airport operator BAA could be beneficial for customers.
A Competition Commission report into BAA, which runs seven of Britain's biggest airports, states that the firm "may not be serving well the interests of either airlines or passengers".
While the report does not include any firm proposals, it suggests that there is potential for competition between Heathrow, Gatwick and Southampton airports in the south, as well as Edinburgh and Glasgow airports in
Scotland.
Such competition would be generated by selling off one or more of the named hubs.
This could lead to lower fees for airlines using the destinations, something which could be passed on to customers in the form of reduced fares.
Competition could also encourage airports to increase capacity, the report added.
The commission claimed that the ongoing problems at Terminal 5 are a further reason that BAA's market position should be examined.
Since the Heathrow extension opened on March 27th thousands of bags have been lost and hundreds of flights cancelled.
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22 April 2008
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