BAA starts appeal over airport sale ruling

BAA will be appealing against an order by the Competition Commission to sell three of its airports.

A ruling by the competition chiefs in March ordered BAA to sell Gatwick, Stansted and Edinburgh or Glasgow airports within two years.

However, BAA will be appealing to the Competition Appeal Tribunal under an argument of 'apparent bias' against it. The tribunal is due to last three days, and a ruling expected in a few months time.

The 'bias' refers to BAA's claim a member of the commission tribunal panel had been linked to an organisation interested in acquiring the airports which BAA is required to sell.

Spanish-owned BAA will also argue the commission did not fully take into regard how the recession would affect airport sales. The commission's decision was based on the premise that a lack of competition in London-based airports and in Scotland was damaging the service for passengers and airlines.

At the beginning of the year BAA said its annual profits had fallen by 18.4 per cent, largely due to the damaging effect the global downturn has had on tourism.