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Redwood Calls for Full Investigation into BAA PLC

John Redwood, Chairman of the Conservative Party's Economic C ompetitiveness Review has written to the Chairman of the Competition Commission asking for a full investigation into BAA PLC.

The text of the letter is as follows:

"I am writing to urge you to open a full investigation into BAA PLC.

"The recent poor service at the country’s leading airports following the government’s requirement for severe hand luggage restrictions and more body searching showed how unresponsive this monopoly is, both to the requirements of their immediate customers, the airlines, and to their ultimate customers, the travelling public. If Heathrow, Gatwick and Stansted has been owned by different people it is likely competitive pressures would have provided a swifter response. The BAA failed to communicate quickly the message that people should not bring hand luggage, and failed to provide enough extra staff to undertake the body searches rapidly to maintain flows through the airport.

"Aviation is a fast growing industry where competition has improved service and driven down prices as the main carriers compete more one with another and face a successful competitive challenge from new low price airlines. An important part of the traveller experience is how well they are treated at the airport. Competition between the major airports would doubtless produce faster and better procedures for allowing people to get through document checks and security and to get airside. More competition would also help improve the retail and catering offer, where the current power of BAA PLC is strong when negotiating terms with retailers and caterers.

"Given the success of allowing more competition amongst airlines, it would seem there is a compelling case to now permit the same between airports. The UK is short of airport capacity, and the service has been very poor in recent weeks Even before the last security scare, there have been problems with the efficiency of the checking and the impact on the traveller at Heathrow. We can do better. It is time to open a Competition enquiry, to allow the many interests who would like to make the airports better a chance to make their case.

For further information: John Redwood on 07711 486 555





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