Either Edinburgh or Glasgow airport likely up for grabs

The Competition Commission is said to be preparing to force BAA, a major UK airports operator, to sell off one of the two major Scottish airports.

Industry insiders are speculating that either Edinburgh or Glasgow airport will be offered for sale when the Competition Commission issues its order later this month, as it has said previously that common ownership “adversely affects competition between them.”

The release next week of the commission’s investigation is expected to result in the sale of one of the two airports in Scotland and perhaps also one of the three main London airports also owned and operated by BAA.

Glasgow is seen as the likely target in Scotland, as its core traffic, comprising charter flights, is on the decline, but it is possible that the owner may be given the option of off-loading busier Edinburgh Airport instead.

In April, when the commission issued an early statement, it sent a signal that sell-offs would likely be required, stating that BAA, in owning seven major UK airports, “may not be serving well the interests of either airlines or passengers.”

Spanish-owned BAA oversees the handling of flights carrying almost nine of every ten passengers in the Scottish lowlands. In addition to Edinburgh and Glasgow airports, it also owns Aberdeen, which is the third-largest airport in the country. In England, BAA owns Gatwick and Heathrow, the two busiest airports in Britain, and Southampton and Stansted as well.

www.baa.com