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Airlines and passenger groups have given BAA, which owns Heathrow, Gatwick and Stansted, a resounding vote of no-confidence by calling for the company’s break-up. The users of Britain’s busiest airports have unanimously called on the competition regulator to end BAA’s stranglehold on airports in the South East of England.
The Competition Commission announced yesterday that it will investigate whether BAA’s monopoly of London’s airports is bad for passengers.
It is understood that BAA was one of the only parties to recommend to the Commission that its ownership of Heathrow, Gatwick and Stansted is good for passengers. Airlines and passenger groups argue that BAA’s monopoly means it is able to put profits ahead of investing in new facilities.
The quality of service received by passengers and airlines at all of BAA’s airports will come under scrutiny.
Details on the inquiry come amid mounting criticism of Heathrow. The country’s busiest airport has been criticised for delays and poor service.
Kitty Ussher, the City minister, recently said that “Heathrow hassle” could threaten London’s position as a financial centre.
Willie Walsh, the chief executive of British Airways, yesterday said: “Common ownership is the root cause of the failure to expand Heathrow’s runway capacity.” British Airways is understood to favour the Commission, forcing BAA to sell Stansted.
Virgin Atlantic and bmi are both thought to want Gatwick split from BAA. Sir Michael Bishop, bmi’s chairman, said: “I think there is a very strong case when and if the government pursues Terminal 6 that it, and its new runway, are run separately.”
Virgin and BA are proposing that individual terminals be operated by different companies. BAA would then become responsible for managing the overall site.
Dubai Aerospace, which is trying to buy Auckland airport, is believed to be preparing a bid for Gatwick.
BAA argues that joined-up ownership puts it in a better place to deliver more capacity, allowing it to use its balance sheet to invest more efficiently.
Stephen Nelson, the chief executive of BAA, said today: “What London airports do not need are structural changes that will seriously delay the delivery of the investment that is urgently needed to improve the passenger experience and increase capacity.”
He said that BAA has “the will and the ability to make the investment London airports need”. However, he said that the group in turn required political support for its plans.
The Competition Commission said its investigation into service levels would extend to terminals, runways, ancillary facilities and security.
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One small vignette that explains why BAA needs to be woken up.
I travel through Heathrow Terminal One twice a week. I often have cause to use the loos on the domestic pier near the luggage reclaim. Its always busy and often theres a queue. One of the reasons for this was that the lock on the door of one of the toilets was broken. I noticed this one day and then again aftyer a number of weeks noticed it was still broken. So I put in a comment card while I was waiting for my luggage. Nice letter from BAA. Door remained broken. Further comemnt cards followed. It took them 5 months to fix it. Yes. 5 months just to mend a toilet door. They will spend millions on new shops but nothing on non-profit making basic amenities
James Fuller, London, UK
BAA are in a no win - no win situation. If they apply for planning permission to improve any airport they own they are refused. When people complain about conditions at Britain's airports (and they are a disgrace compared to other nation's airports) BAA say they can't improve conditions because of planning restrictions. I've no axe to grind - I occasionally fly preferring to use Gatwick rather then Heathrow - but BAA should be allowed to extend facilities at all their airports, as well as build a new runway at Heathrow, Gatwick AND Stanstead to ensure that WHEN they are needed they can be brought into use without delay. The same applies to the buildings required to service any new runway. Any demonstration against airport growth should be legislated to the same rules as those that apply to trades union demonstrations and strikes.
GM Thompson, Brighton, UK
I have travelled fairly widely from the UK to most Continents and have decided that Airports are built for Operators and Airlines and not for passengers, 'customers?'. Two facets of airport design would make them more efficient and cost effective.
1. When the passengers luggage goes through to 'Airside' so should the ticket holder. Saves unloading if a passenger goes missing.
2. Children and Parents (Carers) should be fast (Seperate lanes) tracked through Passport control and security checks.
Winging children make a poor experience for all.
An interested traveller -no small children.
Nick Critchlow, Speldhurst, Kent, England
The management of Heathrow is nothing short of an absolute disgrace with huge, unnecessary delays caused simply by appaulling planning and implementation. Customer service is non-existent. Stephen Nelson and BAA have forfeited any moral right to retain ownership of these airports
Sinclair Stevenson, Bucharest, Romania
The BAA had a interrupted history of filthy, cynical, prison-like service at its airports since it was formed in 1966. Yet barely a word was said against it until it was sold to a Spanish owner about a year ago. Since then we have enjoyed regular briefings questioning its monopoly position, level of investment and staffing.
Snobbery and racism are alive and well in Blighty mes amigos.
Ubi, Edinburgh, UK
To Julia,
You can ask about liquid restrictions in flights made by your goverment and replicated by EU = extra checking time !! It's funny to see that everybody is complaining about what has been happening last year, what about the years before ? The monopoy was there , wasn't it ? I gues it is hard to see, as english, that a foreign company is making profits in your own land. ??
cheers
Jose Mendoza, Gran Canaria, Spain
Mr. Nelson talks about "changes that will seriously delay the delivery of the investment that is urgently needed to improve the passenger experience and increase capacity.â
BAA hardly has a great record in implementing anything that will improve the passenger's lot. Adding more shops and more expensive eateries may be his idea of what the 'passenger experience' is about but fewer queues, more seats and cleaner facilities would make all the difference.
No profit in that though!
John Smith, Budapest, Hungary
It's not fair to penalise Ferrovial for the greedy and incompetent British administration. Heathrow's problems didn't start yesterday. Whatever is done must be done in agreement with Ferrovial.
Fabio C, London, UK
The problem isn't just BAA Plc, it's also our incompetent government who supported Sir John Egan's claim that T5 could be built to make use of surplus capacity on Heathrow's two existing runways. What a joke !
Some of us argued for an entirely new 24 hour offshore airport in the Thames estuary, taking freight and transfer passengers away from the existing SE airports, and freeing up capacity at Heathrow, Gatwick and Stanstead.
Not surprisingly the off-shore option was opposed by British Airways who have a stranglehold on no less than 42% of all landing and take-off slots at Heathrow.
How will breaking up BAA solve any of these other problems, not to mention the enviromental questions ?
In my opinion it is the corruption of government by big business that needs breaking up, not some grubby little company of shop assistants, catering staff and toilet cleaners!
Peter Hooper, Windsor., Berkshire.
BAA has already had more political support than it deserves otherwise they would have been kicked out by now.
The ambiguous statement made by BAA that it has 'the will and ability to make the investment London airports need' is risible, so far all they have done is show the will and ability to turn our airports into shopping malls with no seats.
Why would a terrorist need to put a bomb on a plane? They could just detonate in the departures area and take out the thousands of people waiting endlessly to check in - it is so over crowded with shops and people that there would be little hope of evacuation.
Julia D, London,