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Gatwick up for sale

Catherine Deshayes

Gatwick Airport has been put up for sale by airport operator BAA following a ruling by the Competition Commission which ruled that BAA may be forced to sell up to three of its UK airports because of concerns over its monopoly.

Gatwick Airport is the busiest single runway airport in the world, the second largest in the UK and the tenth busiest international airport in the world. It currently serves 35 million passengers each year.

Industry experts have said that Gatwick could fetch between £2 and £3 billion.

Colin Matthews, BAA's chief executive, said, "We have decided to begin the process of selling Gatwick Airport immediately.

"Gatwick has long been an important and valuable part of BAA and the decision to sell was not taken lightly.

"We believe that the airport's customers, staff and business will benefit from the earliest possible resolution of current uncertainty," Mr Matthews went on to say.

The Competition Commission recommended in August last year that BAA sell two of its three London airports - probably Stansted and Gatwick - as well as either Edinburgh or Glasgow airport.

The recommendations came as there were felt to be significant problems arising from BAA's common ownership of seven UK airports. The problems included a lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity.

BAA remains steadfast in its desire not to sell Stansted airport, as they believe that a change of ownership would interfere with the process of securing planning approval for a second runway, which remains a key feature of Government air transport policy.

The Competition Commission will publish its final report in 2009, which will advise which airports should be sold.