Sale of Scots airport back on as BAA loses latest legal battle

A "FOR SALE" sign was again hoisted over Edinburgh and Glasgow airports yesterday after owner BAA lost a key battle with the Competition Commission in their tortuous legal dispute over market dominance.

• Ryanair chief Michael O'Leary hailed the appeal court decision as a 'great result for competition' Picture: AFP/Getty

The Court of Appeal reinstated a decision of March last year by the regulator that BAA, owned by Ferrovial of Spain, had to sell either of the two biggest Scottish airports as well as Gatwick - since sold - and London Stansted.

The company, whose other hubs include Heathrow and Aberdeen, had successfully appealed that ruling at the Competition Appeal Tribunal, which said in December 2009 that there was "apparent bias" in the Competition Commission's decision for a break-up.

This related to Professor Peter Moizer, a member of the CC's airports inquiry panel, being an adviser to the Manchester Airport Group pension fund when MAG had stated its interest in buying Gatwick.

However, the Court of Appeal overturned the tribunal decision yesterday, ruling that Moizer was "too remote from Manchester Airport Group for apparent bias to be a real concern" as the competition probe reached its final stages.

It means as things stand BAA, which sold Gatwick for 1.5 billion late last year, will have to push ahead with the sale of either Edinburgh or Glasgow and Stansted within two years.

However, the group revealed the battle was not over yesterday, saying it would seek permission to appeal the case to the Supreme Court.

A company spokesman said it was "disappointed" with the court decision. "We note the court's view that apparent bias in relation to a (CC] panel member existed during part of the commission's investigation and will study this judgment carefully. We will be seeking permission to appeal to the Supreme Court," he said.

The commission said it was pleased the Court of Appeal had found in its favour. It said in a statement: "The effect of this decision is to restore in full our report together with its remedies including the requirement for BAA to sell Stansted and either Edinburgh or Glasgow airports, Gatwick having already been sold.

"Our intention now is to work with BAA to implement these measures in the interests of the travelling public."

The CC added: "We take very seriously the need for our inquiry panels to be completely impartial." In January of this year the regulator commissioned an independent review of its rules on conflicts of interest.

"We shall now be taking further action on the basis of its recommendations to prevent any recurrence of this kind of issue," the regulator said.

Yesterday's legal decision was welcomed by airlines and consumer groups.Michael O'Leary, chief executive of Ryanair, said it was "a great result for competition, consumer choice and passengers".

O'Leary repeated Ryanair's previously expressed claim that BAA, privatised from the old British Airports Authority in 1987, was a "high cost, inefficient" airport monopoly and said the ruling "vindicates the original findings of the Competition Commission

Peter Smith, an analyst with consumer website Travelsupermarket.com, said: "The break-up of BAA's monopoly on UK airports should be welcomed by consumers.

"The introduction of new operators for some of the UK's key airports will give consumers greater choice and in turn should raise the standard of service within all UK airports."