ZAMAN DAILY NEWSPAPER (2006082535941)

ZAMAN DAILY NEWSPAPER (2006082535941): A new deadline for BAA inquiry
Helia Ebrahimi, Mail on Sunday
20 August 2006
Reader comments (1)
TOP airlines have won an 11th hour extension to submit evidence for a watchdog's investigation into beleaguered airport operator BAA.



WANT TO KNOW MORE?AIR CHAOS: Latest advice
BLOG: My BA problem
Delayed? Don't fly into a rage
OTHER STORIESBT cuts off broadband firm
Co-op and Spar to fight Tesco
Market report: Friday 09.00
Apple recalls fire-fear batteries
Gas bills 'could fall' this winter
THE EDITOR'S PICKSInterest rates: The next move
Bank fees: Reclaim charges now
Credit card tip: Fee-free transfers
Fuel bills: Any point in switching?
Holidays: 50 ways to save

British Airways, easyJet and BMI asked the Office of Fair Trading to extend last Friday's deadline to this week so they could include comments on the fallout from this month's terrorist scare.


The move raises the pressure on BAA, which has been embroiled in a spiralling row with airlines over its handling of security measures during the terror alert.


The late submissions are expected to increase the level of criticism of BAA, which has already been attacked by other airline bosses.


Ryanair chief executive Michael O'Leary launched a fierce broadside last week and called for BAA to be broken up.


The OFT's investigation into BAA's dominant role in the UK's airport market was launched earlier this year and coincided with the £10bn takeover of the company by Spanish construction giant Ferrovial.


Despite a cautionary statement from the OFT in late May saying it was considering a full investigation into the British airports market, Ferrovial went ahead with its takeover.


At the outset of its inquiry, the OFT said it was open-minded about the outcome. But the growing pressure from airlines makes it more likely that the watchdog will refer the matter for a full investigation by the Competition Commission, which could break up BAA.


Insiders have voiced concern that BAA has a stranglehold over all elements of air travel - from security to duty-free shopping - at Heathrow, Stansted and Gatwick.


Virgin Atlantic, which made its submission in time for the original deadline, said it also wanted a full investigation by the Competition Commission into BAA's dominance.