LONDON (AFP) — British regulators said Tuesday that Spanish-controlled BAA's ownership of seven key airports may not be in the best interests of airlines or consumers and it could call for a sale of one or more to remedy the problem.
"BAA's common ownership of seven airports in the UK may not be serving well the interests of either airlines or passengers," the Competition Commission said in an interim report on its probe into the market for airport services.
BAA runs seven British airports including Heathrow, Gatwick and Stansted that border London, as well as Southampton airport in southeast England, and Edinburgh, Glasgow and Aberdeen in Scotland.
"The CC is inclined to the view that common ownership of the BAA airports is a feature of the market that adversely affects competition between airports and/or airlines," the report said.
"It is also inclined to the view that shortage of airport capacity, government policy and the regulatory system for airports might also be features that adversely affect competition or exacerbate other features which do so."
The Commission stressed that no conclusions have been reached while the final findings were due for publication in August.
However, it added that "if competition problems are identified, it intends to set out its possible remedies at the same time, whether requiring the sale of one or more of BAA's airports or otherwise."
BAA chief executive Colin Matthews hit back, saying the group "remains of the view that (BAA's) ownership is in passengers' interests, both in terms of tackling the shorter term service problems, and in following through with major commitments to investment in new facilities and capacity."
In response to the CC report, the British government said it would probe regulation of the country's airports.
"I am today announcing a review of the economic regulation of the UK airport system, supported by a panel of experts," said Transport Secretary Ruth Kelly.
"This recognises the points made by the Competition Commission ... together with those of the aviation industry and other key stakeholders, about the potential shortcomings of the current regulatory system."
British airlines, led by British Airways, have repeatedly called for the break-up of BAA, which was bought in 2006 by a consortium led by the Spanish construction group Ferrovial for 10.23 billion pounds (14.8 billion euros, 18.8 billion dollars).
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