BAA yesterday responded to the UK Office of Fair Trading's (OFT)OFT's consultation paper which last year signalled its intention to refer the supply of airport services by BAA to the Competition Commission (CC) for more

detailed investigation.
BAA Ceo Stephen Nelson said that the aiports company had no intention of selling any of its airports: ‘I welcome the opportunity to have a thorough review of the UK airport market, but I am concerned at the OFT's narrow focus on the structure of BAA. The real problem for passengers is lack of capacity, not the structure of BAA.
‘This shortfall is the result of a complex interplay of political, planning and environmental issues, all of which need examination. There is a great opportunity over the coming years to deliver dramatic improvements for passengers using our airports, but this requires a regulatory system that encourages investment. I do not believe the current regulatory model in the South East fits this purpose.’
BAA said it accepts that the airport market deserves study, but believes the OFT has adopted an uncritical approach to many of the issues raised in the report. In many key respects the market study, as it currently stands, is a weak basis for reference.
More importantly it says that the market study does not set out a compelling case that BAA?s airports can compete more significantly, and serve the consumer interest better, under separate ownership.
BAA has been invited to offer undertakings in lieu of a reference. But because of BAA?s strong belief that separate ownership will not address the core problems facing airports in the South East, the airports company says it does not consider it appropriate to offer such undertakings. Significantly, BAA says there is consequently no intention on its part to sell any of its airports.