Telegraph | Money | Ferrovial faces first challenge at the controls as BAA inquiry approaches

Telegraph | Money | Ferrovial faces first challenge at the controls as BAA inquiry approaches: "Ferrovial faces first challenge at the controls as BAA inquiry approaches
By Roland Gribben (Filed: 27/06/2006)

An announcement is expected shortly from the Office of Fair Trading about an investigation into the operation of Heathrow, Gatwick and other airports run by BAA.

The inquiry will pose the first challenge to the new owners Ferrovial, of Spain, which last night declared its �10.1bn offer unconditional after receiving acceptances representing 83.37pc of the equity.
The OFT served warning during the bid battle that it was considering examining the airports market to see if the current BAA-dominated structure works for consumers.
John Fingleton, chief executive, is expected to take charge of any inquiry after ruling himself out of the investigation into alleged price fixing by BA because of his friendship with fellow Irishman Willie Walsh, BA's chief executive.
A BAA break-up involving the loss of one of its key London airports is one of the options expected to figure in the review, but the OFT wants an equally close look at its Scottish operations in Glasgow, Edinburgh and Aberdeen. BAA airports handle more than 63pc of UK passenger traffic but in the London area the proportion tops 90pc and in Scotland is running at 86pc.
The OFT wants to see whether a restructuring of BAA's airport operations will increase competition, while a break-up will also provide a test to assess the market value of Heathrow - the world's busiest international airport - and whether Ferrovial and its partners paid too much or got a bargain.
Mr Fingleton effectively committed the OFT to an inquiry when he said this month that 'competition"