The Competition Commission (CC) in Britain, which investigates, mergers, markets and regulated industries, criticized service at two large London airports and recommended a cap on the amount BAA, which operates London Heathrow (LHR) and London Gatwick (LGW) can charge airlines.
CC recommended an annual increase in the maximum airport charges at LHR to $22.36 in 2009-09 and no more than retail price inflation plus of 7.5% each year after; the board suggested a cap of $11.18 in 2008-09 at LGW, a small drop, with charges then increasing annually by no more than inflation minus 0.5%.
CC chastised BAA for failing to manage long lines at the two airports and not being able to avoid long delays to crews, flights, and passengers.
BAA, owned by Grupo Ferrovial SA of Spain, had asked for a higher increase; airlines such as British Airways had argued for a reduction at both airports, according to the Civil Aviation Authority, which published the CC’s findings.
