The Competition Commission has ordered BAA to sell both Gatwick and Stansted airports as well as either Edinburgh or Glasgow.
In a new report published today, the CC has stated the airport operator must sell the three airports within the next two years with Gatwick first, Stansted second and whichever Scottish airport last.
The sale of Gatwick is already under way having started the process in September last year.
The CC is also demanding BAA improves consultation with airlines at Aberdeen airport while recommending that the CAA takes certain actions at Heathrow airport where BAA will continue to have “substantial market power” even after the sale of Gatwick and Stansted.
Chairman of the BAA airports inquiry Cheristopher Clarke said: “We have decided that the only way to address comprehensively the detriment to passengers and airlines from the complete absence of comeptition between BAA’s south east airports and between Edinburgh and Glasgow is to require BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow.
“They will each then operate under separate ownership from BAA’s other airports.”
A BAA spokesman said: “BAA will consider the Competition Commission report carefully before deciding how 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.
“However, we believe the Commission’s analysis is flawed and its remedies may be impractical in current economic conditions.”
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