Competition commission report expected on troubled BAA

Airport operator BAA – under fire for the Heathrow Terminal 5 fiasco – will tomorrow get the first official indication of whether it will be forced to break up its UK airport empire.

The Competition Commission (CC) will publish a document outlining its “emerging thinking” in its inquiry into BAA and UK airports.

This is only a progress report ahead of a provisional report in late summer and a final report by the end of the year.

But the commission could give a sign tomorrow that it is thinking of ordering a break up of BAA airports which include not only Heathrow, but also Stansted and Gatwick, as well as Southampton, Glasgow, Edinburgh and Aberdeen.

There has already been much speculation that BAA – owned by Spanish company Ferrovial – is looking to sell Gatwick in West Sussex and there have been reports that there have been talks with potential buyers for Stansted as well.

There have been calls for this “monopoly” to end, with opponents of BAA pointing to continuing travel chaos at Heathrow which culminated in the shambolic T5 opening.

The CC has stressed that tomorrow’s document is only a progress report and will not go into any detail on what actions the commission may or may not take following the inquiry.

But the aviation world will at least have some idea of what the CC bosses are thinking before the provisional and final reports are published.

When last August the inquiry chairman Christopher Clarke listed the issues the commission would be looking at, he said: “We are well aware of the concerns expressed in the media and elsewhere over the operations of BAA’s airports.

“These include delays experienced by passengers going through security or immigration...and other aspects....such as overcrowding, signage and cleanliness.

“We are looking at how common ownership could affect BAA’s incentives both to invest in and develop its airports, and operate them.”

In referring BAA to the CC, the Office of Fair Trading said there was evidence of “poor customer satisfaction” and that in the south-east of England, BAA’s airports handled 90% of passenger trips “and these airports could under separate ownership compete to attract air passengers”.

OFT chief executive said at the time of referral in December 2006: “We believe that the current market structure does not deliver best value for air travellers in the UK, and that greater competition within the industry could bring significant benefits for passengers.

“There is evidence of poor quality and high charges – BAA’s investment plans, which are of great importance to the UK, have raised significant concerns among its customers. These are signs of a market not working well for consumers and we believe that a full inquiry into BAA’s structure is justified.”