BAA must sell three airports, but may appeal

Heathrow planes The Competition Commission has ordered BAA to sell Gatwick and Stansted airports, together with either Glasgow or Edinburgh.

In its final report of a two-year inquiry, the commission decided that one of the Scottish airports would have to join the other London airports on the for sale list. The commission had looked into BAA's dominance over airports in Scotland and the south-east of England.

BAA responded to the findings by saying the commission's analysis was "flawed". Colin Matthews, chief executive of BAA, told the BBC it might have to challenge the decision since selling three of its seven UK airports in this economic climate could be impractical.

Ashley Steel, global chair for transport and infrastructure at KPMG, added selling three airports within two years would be difficult, "particularly in the current environment with little or no debt around and with air passenger numbers falling".

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