NEWS

Airport shake-up could aid passengers

A major shake-up of some of the UK's biggest airports could benefit East Anglian passengers, experts predicted yesterday.

Stansted could be one of three airports sold off by the Spanish-owned company BAA after it was heavily criticised in a report by the Competition Commission (CC).

The commission said “significant competition problems” arose from BAA's ownership of seven UK airports, including Heathrow and Gatwick, and suggested a remedy would be the sale of two of its three London airports and also either Edinburgh or Glasgow.

More than 23.3 million passengers pass through Stansted each year - with a survey showing it is the most popular London airport for people from Norfolk - and any sale could mean improvements to customer services.

Academic Prof Stephen Davies, from the University of East Anglia's Centre for Competition Policy, said: “Consumers might benefit in the short term because different firms have different ideas about how they can provide the best service for passengers and more firms thinking about how they can deliver this is better than just one.

“However, to lower fare prices they would need an incentive and with airports already working flat out this is unlikely because they don't have the capacity at the moment.

“It is important to say these are provisional findings and it is not a definitive report.”

The CC accused BAA of:

A lack of responsiveness to the needs of its airline customers.

A lack of initiative in planning capacity.

Investment not tailored to the requirements of airport users

Lower levels and quality of service for both airlines and passengers.

Due to make a final report on BAA airport ownership in the first part of next year, the commission will consult on proposed remedies.

The two London sales are almost certain to mean Gatwick and Stansted as the CC said it was unlikely to “require the divestiture” of Heathrow unless the sale of Gatwick or Stansted was likely to be impractical or ineffective.

Richard Jenner, managing director or Norwich International, said: “Everyone has been expecting it to happen and it is a good thing. It is hard to know what impact a sale would have on Norwich because whatever happens it won't be overnight.”

The move was also welcomed by airlines which have long suggested they were getting a bad deal from BAA. Jim French, chairman and chief executive officer of low-cost airline Flybe, said: “We have been saying for years that the BAA monopoly of airports in South East England and the Scottish lowlands in particular is bad for everyone, not the least of which the travelling public. BAA has undoubtedly played a valuable industry role through its evolution from public to private ownership, but times change and the time is now ripe for change. It is hopefully a change that - empowering and encouraging healthy competition - can only prove a win-win for everyone.”

Talks aimed at averting a planned series of airport strikes that could cause chaos over the bank holiday weekend were held yesterday.

Cabin staff and baggage handlers are due to take part in a series of 24-hour stoppages involving Gatwick, Stansted and Manchester airports over the next few days. The two unions involved - Unite and the GMB - said their officials would meet bosses of the management company in the dispute, airport services business Swissport, at conciliation service Acas.