BAA loses appeal against forced airport sale

Thursday, 14th October 2010

Airports operator BAA once again faces being forced to sell or Stansted airport, as well as either Edinburgh or Glasgow after an earlier court ruling was overturned. BAA had successfully appealed to the court, which found there had been “apparent bias” in the decision by the Competition Commission. That appeal has now been overturned.

As a result of the latest court finding, the Competition Commission’s ruling that BAA must sell some of its UK airports is back in force. Last year, BAA sold Gatwick airport to American investment fund Global Infrastructure Partners for £1.5 billion.

BAA currently operates Heathrow, Stansted, Glasgow, Edinburgh, Southampton and Aberdeen airports. In March, BAA won its appeal to the Competition Appeal Tribunal, arguing that a member of the Competition Commission inquiry panel was connected to the owners of Manchester airport. They had shown interest in buying Gatwick.

However, in the latest ruling, Lord Justice Maurice Kay, Lord Justice Patten and Lord Justice Jacob found the tribunal had erred in finding “apparent bias”. The Lord Justices ruled to restore the original decision made by the commission. BAA says it will now seek permission to lodge an appeal in the Supreme Court.

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