Break-up of BAA would never take off for customers >> .:thebusinessonline.com:.

Break-up of BAA would never take off for customers >> .:thebusinessonline.com:.: "Break-up of BAA would never take off for customers

03 September 2006
BAA: The Office of Fair Trading is considering looking at the UK airports market, to see whether the system works well enough for consumers, given the high proportion of air passengers who pass through BAA�s terminals.
But BAA is right to dismiss calls to break up its ownership of seven UK airports.
The system may not be perfect, but there�s already plenty of competition across BAA�s airports, and arguably the airlines that use them have too much power. In a submission to the OFT, BAA argues that a more fragmented ownership structure would undermine vital investment. It reminds the competition authorities that instead of responding to calls from airlines for an airport break-up, the real job is to protect the longer-term interest of all consumers.
That�s quite right. Indeed, BAA could also have argued that breaking up Britain�s airports would be a bureaucrat�s charter. Instead of overseeing one company, the CAA airport regulator would need to cope with different owners, which would no doubt protest if any airport were singled out for government favours.
The OFT would do better to review the airlines and the unfair airport slot allocation system. In any case, there�s a good chance that, left to its own devices, BAA owner Ferrovial may reduce the number of airports to pay for the investment needed at the rest.
Clearly, competition is desirable. But even though the main UK airports are under one ownership umbrella, they do already compete with each other. In truth, it shouldn�t be u"