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British Airways network to be broken up

March
23rd
member
Sammy

The Competition Commission finally announced this week that British Airways has been told it has to break up the large monopoly it has over the UK’s airport networks and they were ordered to sell both Stansted and Gatwick along with one of their key Scottish site of Glasgow and Edinburgh.

The three airports need to be sold within two years; they are starting with selling Gatwick then Stansted and will finally sell one of their Scottish hubs.

Chairman of the CC’s BAA enquiry, Christopher Clarke said;

“the sale of three airports is the only way to address the disadvantage to passengers and airlines caused by the lack of competition between the major gateways in south-east England and Scotland. He added: ‘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.’

Airlines such as easyJet are welcoming the announcements when a spokesman said;

“the government now has a responsibility to ‘ensure that airports and regulation are not allowed to fail airlines and their passengers again’.


date Posted on: Monday, March 23, 2009 at 6:38 am
Category Netherlands.
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