The Competition Commission (CC) said in a landmark ruling that BAA, which is owned by Spanish construction group Ferrovial, must sell three of its seven air hubs in Britain to prevent the operator having a dominant market position.

BAA slammed the ruling, arguing the analysis was 'flawed' and the conclusions 'impractical' amid dire economic conditions in recession-hit Britain. Airlines welcomed the decision, however.

'The CC will require BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow,' the watchdog said in a statement.

'In its final report on BAA's ownership of seven UK airports... the CC also stipulates that BAA must sell all three airports within two years.'

Gatwick, largely used for charter flights, is the second-biggest airport in Britain after Heathrow near London, and is the 10th-busiest in the world, according to the official Gatwick website.

The CC, which had already revealed the findings in a provisional report published in December, added that BAA's airports ownership prevented competition.

The CC watchdog added that the airports would be sold in sequence, starting with Gatwick, then Stansted and Edinburgh or Glasgow. The disposal of Gatwick was initiated in September 2008 and the sales process is already under way.

BAA said Thursday that the group realised it needed to change - but criticised the conclusions of the CC, which is an independent public body.

Airlines cheered the news, however, after already expressing unhappiness with BAA about delays, overcrowding and queues caused by the extra security measures introduced in the wake of the September 11, 2001 terror attacks and London tube bombings in 2005. -- AFP