ATW: Office of Fair Trading launches investigation of UK airports

ATW: Office of Fair Trading launches investigation of UK airports: "Office of Fair Trading launches investigation of UK airports
Monday July 3, 2006
The UK Office of Fair Trading confirmed Friday that it is initiating a study into whether or not the UK airports market in its current form works well for consumers.OFT announced in late May that it was considering a market study of UK airports (ATWOnline, May 26). Since then it has consulted the Civil Aviation Authority and held meetings with relevant parts of the government, including the Dept. for Transport.
Although the study is not targeting BAA specifically, OFT recognizes that 'nearly two-thirds of UK air passengers begin or end their journey at BAA airports. Within the London area this rises to nine out of 10 passengers, and in Scotland over eight out of 10 air passengers fly from a BAA airport.'
Last month, a consortium led by Spanish construction group Ferrovial won a bid battle to buy BAA, which owns and operates Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton airports (ATWOnline, June 9).
'Greater competition between airlines over the past decade has led to wider choice for air travelers and lower fares,' OFT Chief Executive John Fingleton said in a statement. 'We now think it is time to explore the potential for greater competition within the airport industry as this could ultimately yield significant benefits in terms of timely and adequate investment in UK airports, a better value service to the UK traveling public as well as potentially relieving the industry--and ultimately its customers--of the costs of regulation that may be disproportionate.'
In case OFT finds any irregularities, potential remedies could include recommendations on improving economic regulation and, following any market investigation reference to the Competition C"