BAA s Edinburgh sell-off is boost for air travellers

SCOTTISH travellers will enjoy flights to more destinations through increased competition between Scotland s two busiest airports after the £1 billion sale of Edinburgh was announced, it was claimed last night.

BAA s decision yesterday to sell its jewel in the crown north of the Border, which is currently attracting recordbreaking passenger numbers, was welcomed, as it will eventually mean an end to uncertainty over the future of both of the airports.

The move was forced by the Competition Commission s demand for the operator to rid itself of one of its three Scottish airports, plus Gatwick and Stansted. The sale is likely to be completed by the summer.

Budget airline Easyjet said breaking up the company s Central Belt monopoly will encourage airlines to offer more competition, bringing benefits to people travelling from both cities.

Spokesman Hugh Aitken said: Edinburgh Airport is hugely important to our network and we firmly believe increased competition will improve Edinburgh and Glasgow airports and help us in our aim to make travel easy and affordable.

Glasgow Chamber of Commerce chief executive Stuart Patrick said: The clarity of the decision gives Glasgow Airport stability for the years ahead following three years of uncertainty during which the issue was hanging over the heads of management and staff.

Edinburgh City Council economic development convener Tom Buchanan added: We look forward to working with any new operator in ensuring that the airport continues to play its essential role as a transport hub and as a major contributor to Scotland s economy.

BAA chief executive Colin Matthews said it was committed to Scotland and would continue to invest long-term in Aberdeen and Glasgow, and, until it is sold, Edinburgh.

He added: Glasgow Airport has great opportunities for future growth and development and we think BAA is well-placed to build on its recent success. Both airports are of national importance and have a bright future.

Edinburgh handles more than nine million passengers a year, nearly two million more than Glasgow, and more than 100,000 flights.

Passenger numbers have grown by 6.1% over the past 12 months. Edinburgh directly employs 485 staff and supports 7500 jobs across Scotland. Assurances were sought over the jobs.

Gatwick sold for £1.5bn in 2009 to investment fund GIP and corporate investors are expected to be frontrunners in any deal. BAA is still disputing the Stansted decision.

However, Edinburgh s managing director Jim O Sullivan said he was personally disappointed and claimed in the short term customers will notice very little difference.

He said it was too early to say if there would be consumer benefits in the long term. We thought we were doing a pretty good job, he added.

Meanwhile, First Minister Alex Salmond was urged to push for public involvement in the purchase of the airport.

Transport giants Stagecoach and First Group ruled themselves out of an Edinburgh bid. A Stagecoach source said it was not part of our strategy while FirstGroup said its strategy of concentrating on providing bus and rail services following the sale of Bristol Airport in 2000 was unchanged.

Edinburgh Chamber of Commerce s Graham Birse said: BAA have been good custodians of the airport, but we look forward to working closely with the new owners.

Meanwhile, Independent Lothians MSP Margo Macdonald wrote to First Minister Alex Salmond calling for public involvement in any purchase.

She said: As a strategy, having a public interest on the board is no bad thing.

Edinburgh West LibDem MP Mike Crockart added: It will of course be an anxious time for staff at the airport and I hope BAA protects them in its discussions with potential buyers.

Colin Keir, SNP MSP for Edinburgh Western, said: The new owners should show a commitment to more direct routes and new investment for the airport and the city.

Councillor Allison Hunter, SNP group leader on Glasgow City Council, added: Glasgow Airport is well placed to benefit from future growth in the regional, national and international air passenger market.

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