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OFT launches probe into UK airports
The Office of Fair Trade has decided to carry out a probe into the UK airports market.
The study is designed to establish whether the market structure works well for consumers.
In May, the OFT said it was considering a probe and today announced that it has decided to proceed.
Its decision follows the purchase of main UK airports operator BAA by Spanish group Ferrovial for £10.3bn.
If the OFT finds competition is not working properly in the sector, Ferrovial might face a possible break-up of the group.
OFT chief executive John Fingleton said: “Greater competition between airlines over the past decade has led to wider choice for air travellers and lower fares.
“We now think it is time to explore the potential for greater competition within the airport industry as this could ultimately yield significant benefits in terms of timely and adequate investment in UK airports, a better value service to the UK travelling public as well as potentially relieving the industry – and ultimately its customers – of the costs of regulation that may be disproportionate.”
According to the OFT, nearly two-thirds of air passengers in the UK begin or end their journey at a BAA airport
In London this rises to 9 out of 10 passengers and in Scotland to 8 out of 10.
The OFT has not yet decided whether to defer the the airports market to the Competition Commission for a more in-depth investigation.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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