Ryanair is interested in launching a £2 billion ($3.9 billion) bid for London Stansted if the UK Competition Commission recommends a breakup of airports operator BAA, CEO Michael O'Leary told The Daily Telegraph.
The Commission last year launched an investigation into BAA and the UK airport services market and in April said in an interim report that the operator's common ownership London's Heathrow, Gatwick and Stansted along with Southampton, Edinburgh, Glasgow International and Aberdeen "may not be serving the interests of either airlines or passengers" (ATWOnline, April 23). Later, the UK CAA stated that the common ownership of the three London airports "is likely to prevent, restrict and/or distort competition."
The Commission has not yet published its final conclusions, and observers speculate BAA might sell LGW if required to divest one of its three London airports. However, O'Leary believes the Commission could mandate that each of London's three main airports be in the hands of separate owners. Just selling one, he claimed, would not address competition concerns.
Ryanair's alleged interest in Stansted is not coincidental. The LCC has been at odds with BAA for years and recently announced a capacity cutback it said was related to high fees. Last week, BAA confirmed that it has sued Ryanair because the LCC refuses to pay the increase in charges applied in April (ATWOnline, Aug. 5).
O'Leary claimed the airline will increase STN's throughput from 24 million passengers today to more than 40 million "by halving landing fees" and building a second runway for £150 million and a second terminal for £250 million.
He revealed that acquiring STN is one of his two remaining ambitions before leaving office in "two to three years." The other is the purchase of Aer Lingus, in which Ryanair holds a 29.8% stake. "I was ready to step down a year ago because it was getting boring, but now everyone says we're in the s--- so I'm definitely staying," he said.
by Cathy Buyck
The Commission last year launched an investigation into BAA and the UK airport services market and in April said in an interim report that the operator's common ownership London's Heathrow, Gatwick and Stansted along with Southampton, Edinburgh, Glasgow International and Aberdeen "may not be serving the interests of either airlines or passengers" (ATWOnline, April 23). Later, the UK CAA stated that the common ownership of the three London airports "is likely to prevent, restrict and/or distort competition."
The Commission has not yet published its final conclusions, and observers speculate BAA might sell LGW if required to divest one of its three London airports. However, O'Leary believes the Commission could mandate that each of London's three main airports be in the hands of separate owners. Just selling one, he claimed, would not address competition concerns.
Ryanair's alleged interest in Stansted is not coincidental. The LCC has been at odds with BAA for years and recently announced a capacity cutback it said was related to high fees. Last week, BAA confirmed that it has sued Ryanair because the LCC refuses to pay the increase in charges applied in April (ATWOnline, Aug. 5).
O'Leary claimed the airline will increase STN's throughput from 24 million passengers today to more than 40 million "by halving landing fees" and building a second runway for £150 million and a second terminal for £250 million.
He revealed that acquiring STN is one of his two remaining ambitions before leaving office in "two to three years." The other is the purchase of Aer Lingus, in which Ryanair holds a 29.8% stake. "I was ready to step down a year ago because it was getting boring, but now everyone says we're in the s--- so I'm definitely staying," he said.
by Cathy Buyck
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