Tuesday 22 April 2008

BAA 'acting against the interests of passengers and airlines'.

BAA's ownership of seven UK airports "may not be serving well the interests of either airlines or passengers", the Competition Commission has said. The commission's "emerging thinking" report said that BAA, "dominates the airports markets in the south-east of England and in lowland Scotland". The Competition Commission stressed that it had not yet reached any conclusions but added that it would set out its remedies to any competition problems in August, "whether requiring the sale of one or more of BAA's airports or otherwise".
http://news.bbc.co.uk/1/hi/business/7360046.stm

Think about how the monopoly position of BAA could impact on both passengers and the airlines. Are there any advantages to having one operator in control of all the airports? How could more competition be created? Would such competition address the criticsims?

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