Peel considers options if BAA is forced to sell
THE owner of Durham Tees Valley Airport (DTVA) has not ruled out bidding for another if a competition ruling forces BAA to break up its UK portfolio.
Acquisition of Gatwick or Stansted by Peel Airports could strengthen DTVA’s position as a gateway to the North-east, if, as seems inevitable, BAA is forced to sell three of its seven airports by the Competition Commission.
But Peel also said adding to its portfolio would not affect existing services at DTVA, which was in the spotlight this week following rumours that holiday carrier flyglobespan was pulling out and heading for Newcastle.
A flyglobespan spokesman robustly denied the rumours, saying it was in discussion over its summer 2009 schedule with DTV, adding “flyglobespan is not planning a move to Newcastle”.
Neil Pakey, deputy chief executive officer at Peel Airports, said the company was still considering its position over the BAA break-up.
“But the fact that we are the largest UK private sector operator brings its own attractions,” he said.
“We know the UK regulatory climate and the UK culture in terms of passenger experience.
“If we made an acquisition it could potentially attract further opportunities to Teesside.
“However, it wouldn’t detract from the services we currently provide at the airport.”
Airport owners are circling BAA following an inquiry into its control of the UK’s largest airports.
Manchester Airport Group (MAG) - which operates airports at Manchester, Bournemouth, East Midlands and Humberside, and is majority public owned - was named as a front runner.
It said it could be interested in acquiring “one or more” of BAA’s cast-offs. But foreign investors are also interested.
In a preliminary report, the Commission said BAA may have to sell airports at Gatwick, Stansted and either Edinburgh or Glasgow amid concerns about its dominance of Britain’s aviation industry.
Owned by Spain’s Ferrovial, the company also controls Heathrow and Southampton in the south as well as Aberdeen in Scotland.
Describing the regulator’s verdict as “flawed”, BAA said the forced sale of leading airports would be “counter-productive” and threaten efforts to build new runways at airports in London.
But Hugh Lang, group airports director for Peel Airports, welcomed the inquiry and said increased competition would drive up the efficiency of Britain’s airports.
He said: “Different airport owners could work together to make better use of capacity, particularly at airports in the south where space is at a premium. It is proven beyond doubt that competition drives down prices, which can only benefit passengers.”
