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thoma-hawk
25th Mar 2004, 10:48
By Campbell Docherty, Birmingham Post


The buy-out of Coventry Airport is being investigated by the Government - as planners struck a fresh blow against the launch of its new airline.

The Office of Fair Trading (OFT) is looking into February's acquisition by German holiday and leisure group TUI, Europe's biggest travel group.

TUI plans to launch its new Thomsonfly passenger airline from the Baginton site in six days but Warwick District Council has now told the airport it must seek planning permission for its temporary terminal.

The authority has requested that use of the building and further development cease.

The OFT was alerted to the takeover of West Midlands Airport Ltd (Coventry's holding company), from previous owners Air Atlantique, on March 12 after an officer spotted the deal in a trade magazine.

Comments by interested parties have been requested and the OFT has a deadline of June 17 to decide whether or not to clear the deal, require amendments or refer the case to the Competition Commission.

The Commission could then refer it to the Trade and Industry Secretary for final judgment.

In an email, seen by The Post, OFT case officer Angela Pickett said: "I am currently examining the acquisition by TUI of West Midlands Airport under the merger control provisions of the Enterprise Act 2002.

"This will enable the OFT to form a view as to whether it has jurisdiction to investigate the substantive issues of the acquisition."

Last night, an airport spokesman said he was unable to comment on the OFT investigation.

TUI plans to launch Thomson-fly, a low-cost airline flying to 11 holiday destinations in the Mediterranean and the Channel Islands, next Wednesday.

That has been thrown into fresh confusion following the council's ruling that the size and impact of temporary passenger facilities would require an Environmental Impact Assessment and planning permission.

Planning officer Gary Stephens said: "We have notified the airport management that they need to make a planning application and asked that they stop work on the terminal and do not to use the terminal building.

"It is up to them whether they do so. They could carry on and start using the building next Wednesday. If they do, then they are subject to enforcement action."

Any such action will be decided by the planning committee which meets on Wednesday evening - the day of Thomsonfly's launch.

Last night Bill Savage, Coventry Airport managing director, insisted its plans remained intact.

"The council believes that our interim passenger facility is not compliant with planning regulations, an assertion which we strongly contest.

"We have therefore placed the matter in the hands of our legal team, who will be responding as a matter of urgency."

Archy Muir, of the Campaign Against the Expansion of Coventry Airport, said: "I feel the airport will try, come what may, to launch on March 31, even if it means checking the passengers in a church hall in Coventry somewhere.

"But they will be so wounded in the eyes of their customers.

"The OFT investigation is also good news."