Court of Appeal tells BAA to sell Stansted and a Scottish airport

BAA lost the latest round of a long-running legal saga with the competition authorities over its dominance of the UK's airports yesterday, meaning that it will now be forced to sell Stansted, and either Edinburgh or Glasgow airports.

The group, owned by the Spanish infrastructure giant Ferrovial, lost a hearing in the Court of Appeal brought by the Competition Commission.

The case followed a ruling in the Competition Appeals Tribunal earlier this year which found in favour of BAA: that an investigation by the commission was biased because a committee member – Professor Peter Moizer – was an adviser to Manchester Airport's pension fund, which had expressed an interest in investing in an airport.

BAA, which operates Heathrow and has already been forced to sell Gatwick airport, said it would appeal to the Supreme Court. The company argues that the Court of Appeal accepted that "apparent bias" existed during part of the commission's investigation.

"We are disappointed that the Court of Appeal has upheld two of the five grounds argued by the Competition Commission," a BAA spokesman said. "We note the court's view that apparent bias in relation to a panel member existed during part of the commission's investigation and will study this judgment carefully. We will be seeking permission to appeal to the Supreme Court."

The earlier tribunal had found that there was apparent bias in the investigation, but yesterday's hearing upheld an argument by the Competition Commission that this was true only between December 2008 and March 2009, after the pension fund had informed Professor Moizer of its intentions.

The Court of Appeal ruled that Professor Moizer's connection to the Manchester Airport pension fund was too remote to have influenced the original recommendation that BAA be forced to sell off a number of assets.

"We are pleased that the Court of Appeal has found in our favour in the BAA case," a Competition Commission spokesman said.

"The effect of this decision is to restore in full our report together with its remedies including the requirement for BAA to sell Stansted and either Edinburgh or Glasgow airports, Gatwick having already been sold. Our intention now is to work with BAA to implement these measures in the interests of the travelling public."

The commission said it was tightening its procedures following the decision, and that it took "very seriously the need for our inquiry panels to be completely impartial".

Sources close to the commission conceded that it was not surprised that BAA was seeking leave to appeal.

It is understood that BAA will press Professor Moizer's involvement as the central element of its appeal. BAA believes that having established that there was "apparent bias" after December 2008, it has a strong case.

A source close to the company said: "Several key decisions were taken after that date, including the timetable and the criteria for purchasers. It is not just a technicality."

Chris Yates, an independent aviation analyst, said yesterday: "I'm sure that BAA will do everything it can to challenge this decision – Stansted has been a cash cow for the company and gives it a strong footprint in the South-east of England.

Separately, it is believed that Highstar Capital, which owns a 25 per cent stake in London's City airport is hoping to raise as much as £200m from selling the stake.

New York-based Highstar refused to comment, while Global Infrastructure Partners (GIP), the majority owner, did not return calls. GIP also bought Gatwick from BAA last December.

News
people
News
people
Voices
Left: An illustration of the original Jim Crowe, played by TD Rice Right: A Couple dressed as Ray and Janay Rice
voices

By performing as African Americans or Indians, white people get to play act a kind of 'imaginary liberation', writes Michael Mark Cohen

News
i100
PROMOTED VIDEO
Arts and Entertainment
Hand out press photograph/film still from the movie Mad Max Fury Road (Downloaded from the Warner Bro's media site/Jasin Boland/© 2014 Warner Bros. Entertainment Inc.)
films'You have to try everything and it’s all a process of elimination, but ultimately you find your path'
Arts and Entertainment
Imelda Staunton as Dolores Umbridge in the Harry Potter films
books

New essay by JK Rowling went live on Pottermore site this morning

News
Russia Today’s new UK channel began broadcasting yesterday. Discussions so far have included why Britons see Russia as ‘the bad guy’
news

New UK station Russia Today gives a very bizarre view of Britain

News
people

Top Gear presenter is no stranger to foot-in-mouth controversy

Arts and Entertainment
Keira Knightley and Benedict Cumberbatch at the premiere of The Imitation Game at the BFI London Film Festival
filmsKeira Knightley tried to miss The Imitation Game premiere to watch Bake Off
News
i100
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

The benefits of Recruitment at SThree...

£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...

Trainee Recruitment Consultants

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Finance Assistant - Part time - 9 month FTC

£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...

Marketing Manager

£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...

Day In a Page

The drugs revolution starts now as MPs agree its high time for change

The drugs revolution starts now as MPs agree its high time for change

Commons debate highlights growing cross-party consensus on softening UK drugs legislation, unchanged for 43 years
The camera is turned on tabloid editors in Richard Peppiatt's 'One Rogue Reporter'

Gotcha! The camera is turned on tabloid editors

Hugh Grant says Richard Peppiatt's 'One Rogue Reporter' documentary will highlight issues raised by Leveson
Fall of the Berlin Wall: It was thanks to Mikhail Gorbachev that this symbol of division fell

Fall of the Berlin Wall

It was thanks to Gorbachev that this symbol of division fell
Halloween 2014: What makes Ouija boards, demon dolls, and evil clowns so frightening?

What makes ouija boards and demon dolls scary?

Ouija boards, demon dolls, evil children and clowns are all classic tropes of horror, and this year’s Halloween releases feature them all. What makes them so frightening, decade after decade?
A safari in modern Britain: Rose Rouse reveals how her four-year tour of Harlesden taught her as much about the UK as it did about NW10

Rose Rouse's safari in modern Britain

Rouse decided to walk and talk with as many different people as possible in her neighbourhood of Harlesden and her experiences have been published in a new book
Welcome to my world of no smell and odd tastes: How a bike accident left one woman living with unwanted food mash-ups

'My world of no smell and odd tastes'

A head injury from a bicycle accident had the surprising effect of robbing Nell Frizzell of two of her senses

Matt Parker is proud of his square roots

The "stand-up mathematician" is using comedy nights to preach maths to big audiences
Paul Scholes column: Beating Manchester City is vital part of life at Manchester United. This is first major test for Luke Shaw, Angel Di Maria and Radamel Falcao – it’s not a game to lose

Paul Scholes column

Beating City is vital part of life at United. This is first major test for Shaw, Di Maria and Falcao – it’s not a game to lose
Frank Warren: Call me an old git, but I just can't see that there's a place for women’s boxing

Frank Warren column

Call me an old git, but I just can't see that there's a place for women’s boxing
Adrian Heath interview: Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room

Adrian Heath's American dream...

Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room
Simon Hart: Manchester City will rise again but they need to change their attitude

Manchester City will rise again but they need to change their attitude

Manuel Pellegrini’s side are too good to fail and derby allows them to start again, says Simon Hart
Isis in Syria: A general reveals the lack of communication with the US - and his country's awkward relationship with their allies-by-default

A Syrian general speaks

A senior officer of Bashar al-Assad’s regime talks to Robert Fisk about his army’s brutal struggle with Isis, in a dirty war whose challenges include widespread atrocities
‘A bit of a shock...’ Cambridge economist with Glasgow roots becomes Zambia’s acting President

‘A bit of a shock...’ Economist with Glasgow roots becomes Zambia’s acting President

Guy Scott's predecessor, Michael Sata, died in a London hospital this week after a lengthy illness
Fall of the Berlin Wall: History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War

Fall of the Berlin Wall

History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War
How to turn your mobile phone into easy money

Turn your mobile phone into easy money

There are 90 million unused mobiles in the UK, which would be worth £7bn if we cashed them in, says David Crookes