Airport monopoly broken up

Yesterday, the British Competition Commission ruled that airport operator BAA will have to sell several airports in London and Scotland. The Times describes the decision as one of the bravest and most sensible made by an official British body. "The proposal to break up BAA ... is excellent for two broad reasons. First, competition generally yields better results, in terms of both customer service and economic efficiency than monopoly, regulation and central planning. ... This particular break-up will protect London from a big environmental blight and the British economy from a serious blunder ... to expand Heathrow. ... It may be true that extra runways at Heathrow would relieve London's air travel problems. But it is equally possible that competition would deliver big improvements - as it did in telecoms and electricity distribution - by squeezing greater efficiencies out of existing resources. ... Unfortunately for Labour, yesterday's report means that Mr Brown has again chosen exactly the wrong issue on which to take his resolute stand."

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