Sale of Stansted Airport Approved by Competition Commission

Posted on 24 January, 2013 by Kirsten Kennedy

The past week has been particularly tough on airports in the UK, with Heathrow being forced to cut around 10 per cent of all flights on several days in order to allow for runway clearance. Regional airports have also suffered, with large amounts of snow causing delays and cancellations for frustrated passengers.

Much of the problems faced by UK airports this week have been due to poor weather conditions on the continent. Even when the snow cleared enough for flights to depart from this country, European airports such as Amsterdam’s Schiphol and Berlin have faced issues with runway safety and visibility. This has meant that a number of flights have simply returned from their departure airport, causing further congestion for air traffic control across Britain.

Stansted Airport

Fortunately, there has been some good news in the aviation industry amid the chaos – or at least for Manchester Airport Group. Its bid for London’s Stansted Airport has finally been approved, and the sale will be able to go ahead next month.

Currently, Heathrow Airport Holdings owns the London airport, yet was warned to sell up or face penalty charges by the Competition Commission. This was because Heathrow Airport Holdings was deemed to have too large a share of airports in the UK; along with Stansted, the group owns Heathrow, Southampton, Glasgow and Aberdeen airports, and also owned London Gatwick Airport until December 2009.

The announcement of the sale signals the end of Heathrow Airport Holdings’ lengthy court battle to remain in control of Stansted Airport. Back when the group was known as BAA in 2009, the Competition Commission ordered the sale of both Stansted and Gatwick due to concerns regarding market domination in London and the South East.

While the sale of Gatwick to Global Infrastructure Partners, which own both Edinburgh and London City airports, went off without a hitch, Heathrow Airport Holdings instigated an appeal against the order to sell Stansted. This was eventually denied once and for all in August 2012, when the group announced that Stansted was on the market.

Manchester Airport Group will now take over all operations, including management of the associated retail and leisure property, at Stansted Airport in a deal worth £1.5 billion. Manchester Airport is currently the third busiest airport in the UK and Stansted the fourth – meaning that the group will now control a much greater percentage of the aviation market than ever before.

Industry experts predict that the group will now attempt to forge greater links between Stansted and the continent, as well as expanding its international presence by adding routes to destinations in the Middle East and North Africa. This will mean placing it in direct competition with nearby Heathrow, which is the largest and only hub airport in the UK.

Chief executive of Heathrow Airport Holdings, Colin Matthews, stated his confidence that Manchester Airport Group would be suitable owners for Stansted and spoke of his hopes for the future of his company.

He said; “Stansted Airport and its people have been part of our company for a long time.

“We wish the new owners every success and are confident the airport will continue to flourish.

“We will continue to focus on improving Heathrow, Glasgow, Aberdeen and Southampton airports.”

Do you think the Competition Commission was right to demand that BAA, now Heathrow Airport Holdings, sell both Stansted and Gatwick Airports, or should they have been given the opportunity to sell an airport outside of London and the South East instead?



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