Cheers for removing BAA monopoly on British airports

The Competition Commission, which regulates markets in the United Kingdom, said last week that BAA's monopoly control of airports around London needed to end – a decision that brought cheers from millions of international travellers.

Britain's airports have become a national disgrace due to a lack of investment and poor management and it came as no surprise that the Commission ruled that BAA's monopoly was bad for passengers.

BAA, which is owned by Ferrovial, the Spanish infrastructure company, now faces having to sell two of its three airports in London, most likely Gatwick and Stansted, and one of either Edinburgh or Glasgow in Scotland.

The Commission's findings were a damning indictment of what happens when a monopoly is created: complacency, poor service and a lack of ambition. Dubai might do well to remember this ruling in a few years time when it considers whether Dubai World Central and Dubai International should be run together. A bit of competition between these two and Abu Dhabi would benefit passengers, airlines and the region.

However, back to BAA. British Airways, which is BAA's largest customer, was initially very critical of the poor services and crumbling infrastructure at airports such as Heathrow and Gatwick. In February, it supported breaking up BAA but then something happened and the UK's flag carrier decided that an airport monopoly was not so bad after all.

What changed? Could it have had anything to do with the start of merger talks between BA and Spain's Iberia? It would be outrageous to suggest that BA was trying to curry favour on the Iberian Peninsula by changing its tune on the Ferrovial-BAA's monopoly – outrageous, but probably true.