http://business.blogs.cnn.com/2008/08/21/final-call-for-baa/ Get to grips with the issues affecting world business Wed, 16 Dec 2009 20:43:39 +0000 http://wordpress.com/ hourly 1 http://business.blogs.cnn.com/2008/08/21/final-call-for-baa/#comment-12872 Mobile phone blockers Wed, 02 Dec 2009 13:11:54 +0000 http://cnnibusiness.wordpress.com/?p=150#comment-12872 Nice story you got here. It would be great to read more concerning that matter. Nice story you got here. It would be great to read more concerning that matter.

]]> http://business.blogs.cnn.com/2008/08/21/final-call-for-baa/#comment-2102 James Coyle Thu, 21 Aug 2008 19:10:32 +0000 http://cnnibusiness.wordpress.com/?p=150#comment-2102 This is probably the single best decision the Competition Commission has made: BAA's monopoly stems from its origin as a government agency ("British Airports Authority") privatized in the 1980s. The flipside of the deal was that the amount BAA could charge airlines was capped. So, the new owners made money by turning them into tax-free malls for trapped travelers - given that BAA can only make money from shoppers, everything related to airlines was given second-priority.... I think we can all see the problem here! The successful smaller airports, like Luton and London City, have carved out niches for themselves as ultra-low-price scheduled, and business shuttles respectively. Likewise, Gatwick and Stanstead will quickly appraise their strengths, and focus on the businesses they're best suited for! This is probably the single best decision the Competition Commission has made: BAA's monopoly stems from its origin as a government agency ("British Airports Authority") privatized in the 1980s. The flipside of the deal was that the amount BAA could charge airlines was capped. So, the new owners made money by turning them into tax-free malls for trapped travelers – given that BAA can only make money from shoppers, everything related to airlines was given second-priority.... I think we can all see the problem here!
The successful smaller airports, like Luton and London City, have carved out niches for themselves as ultra-low-price scheduled, and business shuttles respectively. Likewise, Gatwick and Stanstead will quickly appraise their strengths, and focus on the businesses they're best suited for!

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