SCOTLAND’S LONG-TERM economic interests and not just competition between airports should be considered by the Office of Fair Trading in its UK airports market study, the Scottish Council of Development and Industry said yesterday.

The SCDI highlighted the importance of BAA’s three Scottish airports—Glasgow, Edinburgh and Aberdeen—to the national and local economies. In its response to the OFT consultation, the SCDI says creating enhanced competition by forcing BAA to sell one or more of them must be balanced against the potential negative impact of new owners who might be unwilling to make the same long-term investment commitments.

The SCDI is concerned that if the group is broken up, it may affect Scots flights’ access to the major London airports amid ever-escalating demand for slots. But they encourage the OFT to see whether more pricing autonomy in BAA could enhance competition and protect Scotland from moves to increase landing charges.

SCDI chief executive Alan Wilson said, “Scotland is a small, open economy which makes increasing global connections vital. In recent years there have been significant strides in attracting new direct international air routes to and from Scotland. The facilities and concessions offered by airports are an important factor in airlines’ decisions which is one reason BAA is making long-term investments totalling £500 million at its Scottish airports.

“Less investment in an airport’s infrastructure and a focus on low-cost carriers could, potentially, have a negative impact on inward investment and competitiveness. A major issue will always be safeguarding runway capacity at London for flights to and from Scotland. It is said that historically Scotland has gained more leverage over these slots because BAA Scotland is part of BAA plc.”