MPs slam BAA London monopoly

Updated 08.37 Sat Mar 15 2008
Keywords: Stansted, Heathrow, Gatwick, BAA

MPs have called for a break-up of BAA's monopoly of major London airports saying the company had "mismanaged resources".

Spanish-owned BAA, whose UK airports include Heathrow, Gatwick and Stansted, had "failed to plan adequately for contingencies which were far from unexpected", a report from the House of Commons Transport Committee said.

Competition was being "stifled by common ownership of several major airports", with the natural development of the market being "held back", the report said

Heathrow had lost its popularity and it was "regrettable that BAA ever allowed the position to get as bad as it did", the committee added.

Competition was being "stifled by common ownership of several major airports", with the natural development of the market being "held back", the report said.

What was good for BAA was "not necessarily good for aviation" and there was "much to be gained from a state of affairs where BAA did not enjoy such substantial market power", the report added.

The committee said it supported Government proposals to expand Heathrow - plans that could lead to a third runway and a sixth terminal.

"It is clear that a chronic shortage of capacity is hindering Heathrow's ability to provide the sort of service to which it should aspire," the report said.

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