BAA appeals UK regulator's airport sale decision

Published: Tuesday | May 19, 2009


BAA Plc said Monday it will appeal a regulator's decision to force it to sell three of its seven airports in Britain.

The airport operator said the ruling by Britain's Competition Commission had been "affected by apparent bias" and did not take into account the financial impact the sales would have on BAA during a recession.

Competition Commission spokesman Rory Taylor said the regulator was prepared to defend its case.

The commission ruled last year that BAA, which has a near-monopoly on major UK airports, should cut its links to three of them: London's Gatwick and Stansted, and either Glasgow or Edinburgh airports in Scotland.

Decision praised

The decision was praised by low-cost airlines flying out of Stansted and consumer groups that have long pushed the government to loosen BAA's hold on the nation's airports, saying the company was to blame for high fees and poor customer service.

BAA, owned by a consortium headed by Grupo Ferrovial SA of Spain, said the decision was flawed. Unions, who fear job cuts in an already hard-hit sector of the economy, also opposed the ruling.

BAA is in the process of selling Gatwick, but has resisted the sale of Stansted.

- AP