BAA to sell Gatwick

BAA is to sell Gatwick airport after the Competition Commission warned it could force the group to break up.

The airport operator said it took the decision to sell Gatwick to resolve current uncertainty, although the company disagrees with the Competition Commission's findings.

Colin Matthews, BAA's chief executive, said: "Gatwick has long been an important and valuable part of BAA and the decision to sell was not taken lightly. We believe that the airport's customers, staff and business will benefit from the earliest possible resolution of current uncertainty.

"When the Competition Commission published its provisional findings, we said that we would be realistic in our response, though we disagree with the Commission's report and the analysis on which it is founded."

The government originally believed a single operator of London's major airports Heathrow, Gatwick and Stansted would be beneficial in driving forward expansion but recently the Competition Commission has expressed concerns that a lack of competition may be harming both customers and airlines.

In a report published a few months ago, the Commission said it was considering a forced sale of Gatwick to boost competition and improve standards.

Richard Branson has already expressed interest in buying Gatwick as part of a consortium with other airlines. Other buyers including the owners of Manchester airport and investment group Macquarie have also been touted as potential buyers.