UK airports operator BAA has finally fallen in line with the Competition Commission over Stantsted airport, ending a three-year long legal stand-off over the Essex airport.
The airports operator said yesterday it would not mount a final appeal to the Supreme Court, following the Court of Appeal last month upholding a competition ruling going back to 2009, calling for sale of Stansted.
According to a spokesman for BAA, the operator was still in fundamental disagreement with the commission's position on Stansted, given that it served a different market from its other London airport, Heathrow. The spokesman added, however, that it had been advised that it would not have the legal grounds for a further appeal.
The group said in a statement, ''Having carefully considered the Court of Appeal's recent ruling, BAA has decided not to appeal to the Supreme Court and is now proceeding with the sale of Stansted airport. We still believe that the Competition Commission ruling fails to recognise that Stansted and Heathrow serve different markets.''
BAA chief executive, Colin Matthews, had looking to delay the sale given the depressed market conditions.
The airport, which relies heavily on leisure travellers, has taken a hit hard with the double dip recession and has been losing passengers since 2007.
Manchester Airports Group (MAG) and South Korea's state-owned Incheon airport are seen to be interested in Stansted, which has been valued at about 1billion.
Low-cost airline Ryanair has also been in talks with several parties about forming a consortium to bid for the airport.
Ryanair's chief financial officer, Howard Millar, said last month, the carrier was interested in taking a 25-per cent stake in Stansted.
According to BAA there was no particular timetable for the sale but earlier it had sold Edinburgh airport six months after being told it had to dispose of the asset by competition authorities.
It emerged last week that a Qatari government investment fund had acquired a 20-per cent stake in BAA for 900 million.
Spain's Ferrovial is the largest of BAA shareholders with a 39.4 per cent stake.
MAG a likely frontrunner in a bid battle is expected to draw US banks, pension funds and Asian operators.
Earlier this month Australia's Industry Funds Management (IFM) agreed on an acquisition of a 35-per cent stake in MAG if the group won the battle to buy Stansted.
Reuters quoted baking sources as saying MAG, which also operated Britain's Bournemouth and East Midlands airports, would likely face competition from the infrastructure arms of US banks, as also investors in and owners of airports in Asia.
Ferrovial, BAA's largest shareholder with a 40-per cent stake leads an consortium comprising Qatar Holding, GIC Special Investments, Alinda Capital Partners and Britannia Airport Partners.
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