Inquiry chairman Christopher Clarke says the commission could find no alternative except divestiture to the “complete absence of competition†between BAA’s southeast airports and between Edinburgh and Glasgow.
More stringent regulation or the sale of only one airport would not sufficiently address the competition problems, he said adding that sale of the three airports should provide greater incentive for BAA to “be more responsive to their customersâ€Â.
The sale of Gatwick – for up to US$2.78 billion – is underway since the commission’s interim report was issued several months ago, though the stable of bidders has dwindled since an original group of six submitted bids.
BAA will continue to operate Heathrow, the UK’s only hub airport, and will retain significant market power in southeast England even after selling Gatwick and Stansted, the commission said.