BAA vows to battle on over airport sale ruling

Sept. 23, 2011
3 min read

STANSTED Airport's owner, BAA, this week vowed to fight on in its battle against a ruling that it must sell the airport.

On Friday the operator, which also owns Heathrow and has already sold Gatwick, launched a second judicial review of the Competition Commission's March 2009 ruling that it must sell Stansted to break its dominance of the market. Critics have accused BAA, which is owned by a consortium led by Spanish company Ferrovial, of making a mockery of the British legal system by using delaying tactics.

Brian Ross, Economics Adviser for campaign group Stop Stansted Expansion, said: "This is an abuse of the legal process. "Ferrovial have already said they are going to sell Stansted. It's simply aimed at trying to cling on to Stansted in the hope of obtaining a better price."

Ryanair have even accused BAA of using the legal row repeatedly to delay the "inevitable" sale of Stansted.

BAA's legal argument claims the Commission failed to consider "whether there have been material changes of circumstances since its original 2009 decision".

The Commission's original ruling found problems that harmed passengers and airlines at all seven BAA airports.

It said Gatwick would have to be sold first, followed by Stansted, and then Edinburgh or Glasgow.

BAA claimed earlier this year that there had been material changes since the Commission made its decision, including its sale of Gatwick for £1.5 billion to Global Infrastructure Partners. After appeals from both sides, the Commission stuck by its original decision in July, giving BAA three months to start the sales process for Stansted.

"They had 60 days to appeal. They waited to the 60th day," added Mr Ross.

"Now it will take months before the review is heard, then they will try to appeal if they lose, and it could take another year.

"Then they could say, 'Well, in that year, circumstances have changed,' and start another appeal.

"BAA are making a mockery of the British justice system.

In the meantime, the people that work there are in limbo, the airport is losing business because nobody is driving it, and BAA are directing business and long-haul traffic to Heathrow."

A Commission spokesman added: "Having made the original case for the sales and re -examined it in the light of any subsequent changes, we are quite clear that it remains the right one."

BAA Chief Executive Colin Matthews refused to comment.

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