Blow to MAG’s airport acquisition hopes

MANCHESTER Airports Group’s hopes of buying Glasgow, Edinburgh or Stansted airports have been dealt a major blow.

BAA has successfully appealed a Competition Commission ruling that it should sell its two Scottish airports and Stansted in the next two years to improve competition.

The Competition Appeals Tribunal upheld BAA’s appeal because of apparent bias in the original report.

This centred on Competition Commission panel member Professor Peter Moizer’s links with the owner of Manchester Airports Group.

Prof Moizer is a paid adviser to the Greater Manchester Pension Fund – which has close links to Manchester Airports Group, which is owned by the 10 Greater Manchester local authorities.

In a statement the CAT said: “BAA submitted that the participation of Professor Peter Moizer as a member of the group within the Commission who conducted the investigation was subject to apparent bias by reason of his role as a long-standing fee-paid advisor to the Greater Manchester Pension Fund.”

“The Fund sits within the 10 local authorities of Greater Manchester and is administered by one of those authorities.

“The same authorities hold 100% of the shares in the Manchester Airport Group and play an active role in its business strategy. MAG is a potential purchaser of the airport assets to be divested by BAA and participated in the Commission’s investigation.”

The Tribunal said it “unanimously concluded” that a “fair-minded and informed observer would conclude that there was a real possibility of bias affecting the deliberations, thinking and ultimate outcome of the investigation”.

Last week Geoff Muirhead, chief executive of MAG reiterated his interest in BAA’s assets if a sale was forced.

Since the origian Competition Commission ruling in March, BAA has sold Gatwick for £1.5bn.