Bidding war expected if BAA sells Glasgow Airport

BAA is about to face new pressure from the Competition Commission regarding the sale of one of its three airports in Scotland, and it is expected that a bidding war will be sparked over the ownership of either Edinburgh or Glasgow airport.

The embattled owner of seven UK airports has not been successful in persuading the competition regulator that the upcoming sale of Gatwick airport would lessen its dominance in the sector.

Later this week the Competition Commission is expected to publish its interim report. In the report experts say that it will repeat its earlier criticism regarding BAA’s monopolistic ownership of the major airports in London and in Scotland. The commission’s final report will be published in March 2009.

It has been reported by industry insiders that BAA, a subsidiary of Spain’s construction group Ferrovial, will likely sell Glasgow airport. In recent years, Glasgow has not performed as well as Edinburgh airport, and if Glasgow were to be sold off, Edinburgh would be left with the bulk of scheduled air services in Scotland.

The news of the impending sales comes as air traffic is experiencing its greatest decline since the terrorist acts of September 11, 2001, when global aviation was plunged into a recession.

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