BAA break-up inquiry: interim report and consultation

Competition Commission consultation (169 pages, PDF and appendices) on its market investigation into BAA under the Enterprise Act 2002.

This focuses on the possibility of ordering the divestment of some airports. According to the Competition Commission:

275 ... Others issues identified related to services to passengers: car parking; minibus, bus and coach operators; taxis; car hire; retail more generally; and also use of compulsory purchase order powers.

276. These concerns arise irrespective of common ownership, reflecting the strong position of any airport operator over the supply of services at an airport; some also relate to practices also at other airports. It is, however, currently not clear to us that they are appropriately addressed under the terms of this inquiry rather than by other competition legislation. But we invite further comments on concerns from concessionaires or other suppliers arising from BAA’s common ownership of its seven airports ...

As promised, there is some discussion of the economic regulation system (including the CAA's last-minute increases to capital expenditure forecasts) and the lack of financial ring-fencing. But this paper does not discuss what to do about it: this seems to have been treated as a question for a future consideration of remedies.

Responses by Friday 30 May 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission.

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