Chairman braced for BAA break-up
The chairman of the British Airports Authority (BAA) expects the break-up of the airport operator to be recommended.
Spanish-owned BAA operates seven airports, including Heathrow, Gatwick and Stansted, and plans for its future will be published by the Competition Commission next week.
According to reports, BAA faces the threat of being forced to sell two of its three London airports.
Additionally, the Commission may also suggest other options to break BAA's grip through less severe asset disposals and tighter regulation. Another proposal would force BAA to sell either Glasgow or Edinburgh airport.
BAA chairman Nigel Rudd said: "All the things that I'm hearing are that they are going to make those kind of recommendations."
Asked what the financial impact of a break-up would be, he said: "I don't think...it would be a disaster."
He continued: "So the ownership of these airports actually has nothing to do with competition, but I think there is a mood in the country that just wants the business broken up."
Mr Rudd said he did not see the problems affecting the airline industry - which is struggling in the face of high fuel costs and weak economies in Europe and the US - reducing the value of airports.
"Because I think people that buy airports take the long view," he said.
In April, the Commission said BAA may not be serving the interests of airlines or passengers best.
© Independent Television News Limited 2008. All rights reserved.
Post to Fark
Post to del.icio.us
Digg this story
Post to reddit
Post to Facebook
Post to StumbleUpon
Post to GNN
ITN Source