Stansted Airport. For most – it’s the low cost airline hub where Ryanair, EasyJet and the charter carriers reign supreme. For BAA it is their other holdout airport where they reigned supreme.
In 2009, the Competition Commission ruled that BAA had too dominant position over aviation in the UK, and was told to sell Gatwick, Stansted and either Glasgow or Edinburgh airports.
It disposed of Gatwick Airport (which is thriving under new ownership), and has recently agreed to dispose of Edinburgh Airport
For BAA, selling airports during a downturn is a major hit on their bottom line, and thus BAA have been fighting the Competition Commission over the forced sale of the airports.
Stansted Airport, whilst still pulling in the passengers has infact been loosing passengers, with passenger numbers dropping 4.5% to 8.2millon passengers during the first half of the year, and has been loosing traffic slowly since 2007.
Laura Carstensen, chairman of the commission’s BAA Remedies Implementation Group states
“It remains the right decision in the interests of passengers and airlines and it is surely now time for BAA to accept the verdict and proceed with the sale”
Meanwhile, the vultures are now circling with both Manchester Airports Group and Global Infrastructure Partners eyeing up Stansted Airport with a very close eye to add to their airport portfolios.
For BAA to sell at a loss may have impact in the future – remember they still have the crown jewel of UK Airports – London Heathrow
