12 October 2010
It has been ruled that airport operator BAA will have to sell two other UK airports in order to boost competition in the industry. The Court of Appeal has restored the original judgment that was handed down by the Competition Commission in March 2009 but overturned by the Competition Appeal Tribunal in February 2010.
A three judge Court of Appeal panel that was led by Lord Justice Kay has ruled that the Competition Commission (CC) was not biased when it reviewed competition in the industry. This is despite one of its members, Professor Peter Moizer, also being an adviser to a pension fund linked to Manchester Airport Group (MAG), a potential buyer of BAA assets.
This decision means that BAA will have to sell Stansted Airport along with either Glasgow or Edinburgh Airport. The operator has already been required by the Commission to sell Gatwick Airport, which it did for £1.51 billion to Global Infrastructure Partners Ltd.
The Competition Commission has welcomed the Court judgement and stated that it now intends to work with BAA to implement these measures in the interests of the travelling public. The Commission has also taken on board the need for inquiry panels to be completely impartial and has tightened procedures, with a comprehensive review of rules and procedure on conflicts of interest to be carried out in January 2011.
BAA has stated their disappointment with the judgement and will be seeking permission to appeal to the Supreme Court.