American Airlines: BAA’s Airports Should Separate
American Airlines has declared that the UK ought to divide up airport operating group BAA’s network of airports - London Heathrow and London Gatwick among them – since the service level provided is putting airlines off using them.
“The only thing worse than a public monopoly is a private monopoly,'' asserted Don Langford – American Airlines’ managing director of services in Europe and India.
He continued: “Heathrow is so bad that we've shifted some capacity. There's peeling paint, missing light bulbs, duct tape on the floor and all manner of poor housekeeping in our terminal.''
Airlines British Airways and Easyjet Criticise BAA
Mr Langford’s comments coincided with a hearing of the House of Commons Transport Committee held today in London, which involved the participation of representatives from the airlines Easyjet and British Airways. Both directed criticism BAA’s way, but did not go so far as to advocate an airport break-up.
BAA backed itself up, highlighting its struggle to perform after a long period of insufficient funding. “We have much to do in terms of improving our service, and we are making those improvements”, the airport group’s Chief Executive Officer Stephen Nelson said. He added that delays at the airport’s security areas had reduced in duration, and additional staff are set to be taken on.
British Airways - Unsure if BAA’s Airports Should Be Split Up
British Airways operated the largest number of flights from London Heathrow Airport. The carrier’s Paul Ellis disclosed that it was now “not sure” whether BAA’s network should break up. 11 months ago, however, BA suggested that it supported such a move. “You have to react as the circumstances change”, Mr Ellis said at the hearing.
“If that means that we have to change our position then that's the case. There's clearly not enough teeth in the regulatory process at the moment.''
Easyjet – More Effective Regulation Favourable to BAA Airport Breakup
According to Easyjet’s Toby Nicol, more effective regulation of BAA is favourable to a breakup. A break-up, he explained, would create “mini-monopolies”, with the airports still dominating their areas, even when isolated.
Three months ago, the Competition Commission announced it would launch an investigation over whether, given the fact it owns seven airports in the UK, BAA had the rights to raise charges but provide a reduced service. Airport International will cover this investigation in greater details as the facts emerge in future weeks and months.
Source – Airport International’s London Reporter
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