Bongodog1964
Topic Author
Posts: 3069
Joined: Wed Oct 18, 2006 6:29 am

Competition Commission Investigate BAA

Thu Dec 14, 2006 2:46 am

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the enquiry is that BAA are forced to offload LGW and/or STN they could argue that the % return on investment rule is no longer valid as they have true competitition.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.
 
BA787
Posts: 2381
Joined: Sat Jun 03, 2006 9:40 pm

RE: Competition Commission Investigate BAA

Thu Dec 14, 2006 2:53 am

Quoting Bongodog1964 (Thread starter):

Why change what works? BAA are excellent at running our airports, why kick up a fuss? This is down to that stupid tw** Micheal O' Leary kicking up a stink
 
Bongodog1964
Topic Author
Posts: 3069
Joined: Wed Oct 18, 2006 6:29 am

RE: Competition Commission Investigate BAA

Thu Dec 14, 2006 3:00 am

Quoting BA787 (Reply 1):
Why change what works? BAA are excellent at running our airports, why kick up a fuss? This is down to that stupid tw** Micheal O' Leary kicking up a stink

Something to do with now being Spanish owned ?

It's not only Michael O'Leary stirring it, Willie Walsh, Beardy Branson, and the new head of Easyjet have joined in as well.

Its quite something to see the four of them agreeing on something.

I'm sure they think they will get lower landing fees from this; but I can't really see what options they have, all of them are large enough that they can't move their operations to an airport with lower fees because the capacity just isn't there.