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16 August 2007
Issue: 7286 / Categories: Legal News , Competition , Commercial
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BAA dominance under pressure

News

BAA could be forced to get rid of at least one of its airports to ensure standards are raised at the ones it retains, as a result of the Competition Commission’s (CC’s) investigation into the supply of airport services by BAA in the UK.

The Office of Fair Trading made the reference to the CC in March. The CC will now determine whether or not there are any features of the market that prevent, restrict or distort competition and, if so, what remedial action might be taken. BAA owns seven airports: Heathrow, Gatwick, Stansted and Southampton in England; and Edinburgh, Glasgow and Aberdeen in Scotland.

Tom Morrison, an associate at Rollits Solicitors, says the investigation has come about largely as a result of the level of complaints about the standard and availability of facilities at BAA’s airports, most notably at Heathrow, coupled with the belief among many that operational and capacity issues would be addressed quicker and more effectively by an owner which was facing competition from neighbouring airports. 

“One of the outcomes of the investigation could well be that BAA is forced to divest of one or more of its airports in the hope that standards at the retained and divested airports will be raised as a result of having to compete for airlines and travellers’ business,” he says.

BAA, he adds, does not deny there are problems, but puts the blame on planning and other regulatory issues. “Whether BAA would put more time, effort and money into overcoming those issues if it faced competition from rival airport operators is something which should become apparent once this investigation has been completed. While we cannot pre-judge the outcome, common sense would seem to indicate that it is not healthy for one airport operator to have such dominance over the handling of flights in the south east,” he says.

Issue: 7286 / Categories: Legal News , Competition , Commercial
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MOVERS & SHAKERS

NLJ Career Profile: John McElroy, London Solicitors Litigation Association

NLJ Career Profile: John McElroy, London Solicitors Litigation Association

From first-generation student to trailblazing president of the London Solicitors Litigation Association, John McElroy of Fieldfisher reflects on resilience, identity and the power of bringing your whole self to the law

Clarke Willmott—Elaine Field

Clarke Willmott—Elaine Field

Planning and environment team expands with partner hire in Manchester

Birketts—Barbara Hamilton-Bruce

Birketts—Barbara Hamilton-Bruce

Firm appoints chief operating officer to strengthen leadership team

NEWS
A landmark Supreme Court ruling has underscored the sweeping reach of UK sanctions. In NLJ this week, Brónagh Adams and Harriet Campbell of Penningtons Manches Cooper say the regime is a ‘blunt instrument’ requiring only a factual, not causal, link to restricted goods
Fraud claims are surging, with England and Wales increasingly the forum of choice for global disputes. Writing in NLJ this week, Jon Felce of Cooke, Young & Keidan reports claims have risen sharply, with fraud now a major share of litigation and costing billions worldwide
Litigators digesting Mazur are being urged to tighten oversight and compliance. In his latest 'Insider' column for NLJ this week, Professor Dominic Regan of City Law School provides a cut out and keep guide to the ruling’s core test: whether an unauthorised individual is ‘in truth acting on behalf of the authorised individual’
Conflicting county court rulings have left landlords uncertain over whether they can force entry after tenants refuse access. In this week's NLJ, Edward Blakeney and Ashpen Rajah of Falcon Chambers outline a split: some judges permit it under CPR 70.2A, others insist only Parliament can authorise such powers
A wave of scandals has reignited debate over misconduct in public office, criticised as unclear and inconsistently applied. Writing in NLJ this week, Alice Lepeuple of WilmerHale says the offence’s ‘vagueness, overbreadth & inconsistent deployment’ have undermined confidence
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