By Alistair Osborne
Last Updated: 1:14am BST 12/08/2008
The Competition Commission is next week expected to kick-start the break-up of BAA after finding that the airport group’s monopolies in the South East and Scotland are not in the public interest.
Issuing its provisional findings after a 16-month investigation, the commission is expected to say that BAA’s ownership of Heathrow, Gatwick and Stansted, along with three Scottish airports and Southampton, is not working to the benefit of passengers.
The commission has already given a strong hint of its likely findings in its "emerging thinking" document, published in April.
Alongside its provisional findings, the competition authority will also publish details of potential remedies, which could theoretically call for all three London airports to be in separate hands - though most City experts believe BAA would only be forced to sell Gatwick or Stansted and one of its Scottish trio of Glasgow, Edinburgh and Aberdeen.
Potential remedies will then go out to consultation, though next week’s findings are expected to trigger interest from infrastructure funds and other airport groups over auctions for BAA assets.
A consortium led by Spain’s Ferrovial bought BAA for £10.1bn, excluding debts, in 2006.
Analysts believe Gatwick could fetch at least £2bn, while last week Ryanair’s outspoken boss, Michael O’Leary, put the cat among the pigeons saying he could bid a similar sum for Stansted.
Last Updated: 1:14am BST 12/08/2008
The Competition Commission is next week expected to kick-start the break-up of BAA after finding that the airport group’s monopolies in the South East and Scotland are not in the public interest.
Issuing its provisional findings after a 16-month investigation, the commission is expected to say that BAA’s ownership of Heathrow, Gatwick and Stansted, along with three Scottish airports and Southampton, is not working to the benefit of passengers.
The commission has already given a strong hint of its likely findings in its "emerging thinking" document, published in April.
Alongside its provisional findings, the competition authority will also publish details of potential remedies, which could theoretically call for all three London airports to be in separate hands - though most City experts believe BAA would only be forced to sell Gatwick or Stansted and one of its Scottish trio of Glasgow, Edinburgh and Aberdeen.
Potential remedies will then go out to consultation, though next week’s findings are expected to trigger interest from infrastructure funds and other airport groups over auctions for BAA assets.
A consortium led by Spain’s Ferrovial bought BAA for £10.1bn, excluding debts, in 2006.
Analysts believe Gatwick could fetch at least £2bn, while last week Ryanair’s outspoken boss, Michael O’Leary, put the cat among the pigeons saying he could bid a similar sum for Stansted.
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