Win VIP tickets
The Times has learnt that Sir Richard Branson’s airline will make the request as part of its submission to the Office of Fair Trading’s airport markets study. Ryanair, which will make public its submission to the OFT today, is also expected to endorse steps towards a break-up of BAA.
Virgin is likely to stop short of calling for a full break-up of the airports operator but is expected to say that the airports market is so complicated that it demands a thorough investigation.
Analysts expect that the airlines will use last week’s disarray at airports to support their case for a break-up of BAA. One industry insider said: “It has been interesting that the three regulated London airports struggled the most. Luton was back to normal much more quickly than Stansted. It reinforces the question of why we need the group at all.”
Other industry sources said that there was already plenty of evidence, before the events of the past week, to support a break-up of BAA.
The Office of Fair Trading began its study into the airports market, which has a turnover of at least £2.6 billion, in June, pointing out that nearly two thirds of UK air passengers start or end their journeys at a BAA airport. Within the London area that figure rises to nine out of ten passengers.
EasyJet is also expected to use its submission to call for a break-up. It has said previously that an inquiry was “long overdue — there are too many cases where the ownership or regulatory structures act against consumers”.
Of the major UK airlines only British Airways has not expressed a preference for the break-up of the airports group in the past, although it did welcome the announcement of the OFT’s market study in June. The UK flag carrier is taking advantage of a late extension to the OFT’s deadline and is still working on its submission.
The airlines object to BAA because they argue that it is a multi-tier monopoly: it is a monopoly operator and owner in its airports; it controls seven airports across the country; and it controls the shops that go into its airports.
“This means they can control passenger flows in their interest rather than in the interest of the passenger or the airline, their customer,” an industry insider said.
Industry observers have pointed out that the chief executives of the Office of Fair Trading, British Airways and Ryanair are all veteran monopoly-breakers.
When John Fingleton, the OFT’s chief executive, was the Irish regulator, and Willie Walsh, the chief executive of BA, was at Aer Lingus, they and Michael O’Leary, Ryanair’s outspoken chief executive, succeeded in breaking up the Irish airports monopoly.
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£23,093 - £56,211
The Office for National Statistics
Newport, South Wales
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.