The end of the Civil Aviation Authority?

It looks like a very bad day for those with acronyms for names. This morning the Competition Commission said airport operator BAA was not up to scratch and it was "concerned by its (BAA's) apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers". They hasten to add that there are no definite plans for ordering a break up but few people doubt this will happen.

Then Transport Secretary Ruth Kelly announced a review of the economic regulation of the UK's airport system. This will prepare the ground for a new financial framework (the current one has been in place since 1986) by which to run the airports. Another kick for BAA while it's down? Perhaps not, as it would give some clarity going forward at the very least.

The real loser out of this could be the Civil Aviation Authority. One aviation source I've been speaking to says this report is the government preparing to do the CAA a real mischief. It's already unpopular with pretty much everyone for letting BAA whack up airline charges. My man says this report is the government's way of sweeping the CAA off the face of the runway for good and replacing it with another body with much greater powers of governance. Ruth Kelly's statement only mentions the government will "consult at the appropriate time on the wider economic regulatory role of the CAA including the way in which airport regulation operates".

So while everyone talks about the break up of BAA's airport holding, maybe it's those at the CAA who should be really worried.

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