Airport monopoly could reduce prices
PUBLISHED: 17:39 11 April 2007 | UPDATED: 21:38 29 May 2010
IT S all very well referring BAA s ownership of London s three main airport to the Competition Commission ( BAA quizzed over airport monopoly , Dunmow Broadcast, April 5), and I m sure the commission will find a monopoly in the company s business. But am
IT'S all very well referring BAA's ownership of London's three main airport to the Competition Commission ('BAA quizzed over airport monopoly', Dunmow Broadcast, April 5), and I'm sure the commission will find a monopoly in the company's business.
But am I wrong in thinking the bigger the company, the better deal it can get from its suppliers?
If the airports are all split up into separate business units, the
suppliers to whom they outsource all their needs, such as baggage handling, cleaning and catering, will be able to charge more because they will be supplying fewer services.
If the business is split up, perhaps it will be possible for all the separate companies to team up to negotiate good deals on these services, because the alternative is that these smaller companies' costs will rise and, of course, we all know who will pay in the long run - those of us who buy tickets to fly. I'm sure the BAA monopoly does indeed make the company insensitive towards its customers, suppliers and communities in which it does business, but to overcome this will cost money - our money.
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