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Competition Commission says BAA appeal will delay sale of Scottish airport

25.08.09

The sale of Glasgow or Edinburgh airport is unlikely to take place until 2013, and could be pushed even further back by legal challenges and the continuing slump in aviation, the Herald reports. The Competition Commission, which ruled in March that BAA must sell Gatwick, Stansted and one of the two Scottish airports in order to stimulate competition and improve passengers service, has conceded that its original 2 year timetable for the airport sales has been derailed by BAA's appeal to the Competition Appeal Tribunal.

BAA appealed two aspects of the commission’s ruling. It claims bias in the decision and that the commission failed to take account of the effects of selling the airports in the current market conditions. The appeal hearing is due to start in October and unlikely to conclude before next spring. And even if the tribunal upholds the commission’s findings, BAA could still pursue the matter in the courts, which would be likely to put the sale of a Scottish airport back to 2013 or further, the newspaper suggests.

A spokesman for the commission admitted to the Herald that it was now ‘unrealistic’ to expect the sale of all 3 airports – first Gatwick, then Stansted, followed by either Edinburgh or Glasgow – to conclude within 2 years. He said: ‘The timescale has yet to be finalised, but it is likely that the 2 year period would commence at the end of any appeal process.'

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