The competition commission yesterday announced an enquiry into BAA's potential monopoly of UK airports.
At present they own LHR, LGW & STN and in Scotland both Edinburgh & Glasgow
It doesn't take much to realise that particularly in the London area they do have a monopoly; the interesting thing is what will happen.
At present BAA is regulated under a government order that allows them a % return on their investment in each airport; this was considered necessary as they have a monopoly.
If the result of the enquiry is that BAA are forced to offload LGW and/or STN they could argue that the % return on investment rule is no longer valid as they have true competitition. If this was agreed the airports could set their prices according to supply and demand.
The effects of this enquiry could have an effect on UK airports and the costs passed on to passengers for many years to come.