LondonNet : Latest News Headlines
06/06/06
London Airports Take-Over to Fuel Lower Fares
- Changes in ownership and regulation could force the cost issue

London Airports Take-Over to Fuel Lower FaresCHEAPER flights from London’s airports could be on the cards with the looming takeover by a Spanish company of British Airports Authority.

BAA controls 92 per cent of air traffic in the London area, as it owns Gatwick, Heathrow and Stansted, but has come under criticism for its airport development plans, which several airlines say cost too much, resulting in higher airport charges and therefore higher fares for passengers.

It is thought by some industry insiders that Ferrovial, the Spanish company that has now had its bid for ownership accepted by BAA, has less extravagant development plans.

Low cost airlines, Ryanair in particular, have been highly critical of BAA’s charges and other analysts point to BAA’s near monopoly position in London. The government is also concerned on that score and has recently brought in its Office of Fair Trading to look at the issue.

One possible future could be separately owned Heathrow, Gatwick and Stansted airports competing against each other, an outcome that ought to encourage lower costs.



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