GLASGOW Airport could have a price tag of more than £1billion if it is sold off.

BAA bosses were left furious today after the Competition Commission signalled the break up of its UK empire and recommended it lose control of either Glasgow or Edinburgh airport.

West's best as air hub rises to challenge GLASGOW Airport could soon be at the centre of a multi-million pound sell-off just as it regains its crown as Scotland's busiest air terminal. Almost one million passengers jetted in and out of the city hub last month despite rising fuel prices and the credit crunch hitting the holiday trade. Reader Poll BAA has been told it must sell either of its airports in Glasgow or Edinburgh.Would a sell-off of Glasgow Airport be bad news for the city? Yes 29.0% No 64.7% Don't know 6.3% In July Glasgow knocked its Edinburgh rival into second place for the first time this year when it snatched back its title. It handled 939,204 passengers last month - almost 35,000 more than Edinburgh - but although international traffic was up 0.3% compared with July last year domestic traffic fell by 7.9%. Holidaymakers using charter flights also dropped by 3%. Overall passenger numbers at Glasgow last month fell by 3.2% on July 2007. Gordon Dewar, managing director of Glasgow Airport, said: "With fuel prices still too high and consumer spending dented by the credit crunch airlines around the world are feeling the pinch and Scotland is not immune." And he warned: "The next few months will be difficult. "However, we are confident growth will return and we are still actively talking to new and existing airlines about how they can share in Scotland's success." A BAA Glasgow spokesman said today: "We remain focused on delivering for our passengers, and continuing the investment that has transformed our airports."

With business passenger numbers growing at Edinburgh while Glasgow relies more on charter flights, it's thought the west of Scotland airport is the more likely to be sold.

Bosses said it was "business as usual" at the airports today but made plain their intention to fight the ruling during the consultation period.

The Competition Commission also said Spanish-owned BAA should give up two of its three of its London airports - Heathrow, Gatwick and Stansted.

It said there were competition problems at each of BAA's seven UK airports "with adverse consequences for passengers and airlines".

The sell-off was welcomed by Cathcart MSP Charlie Gordon who, when he was leader of Glasgow City Council, was a strong critic of BAA and floated the idea of buying the airport.

Today he said: "It doesn't matter whether it's Glasgow or Edinburgh that's sold because no matter which one goes it means that whoever owns Glasgow Airport - and it could still be BAA - they will no longer have divided loyalties.

"They will have to do their best to attract as much traffic as possible for Glasgow whereas there has always been the suspicion, rightly or wrongly, that for whatever confidential commercial reasons sometimes BAA diverted new routes from Glasgow if that suited their purpose even though the carrier was interested in coming to the city.

"The break-up makes things more transparent and Glasgow will be operating on a level playing field."

Council leader Steven Purcell said the airport was a "fantastic asset" and predicted there would be no shortage of potential buyers.

They could include the Peel Group, which owns Clydeport. It already operates Liverpool John Lennon Airport, Durham Tees Valley Airport, Robin Hood Airport Doncaster Sheffield and the small City Airport in Manchester.

There has also been speculation that Australian investment group Macquarie and Manchester Airport Group could be interested.

Manchester, which is used by many Scots to fly across the Atlantic, also owns East Midlands, Bournemouth and Humberside airports.

Eight local authorities in the Manchester area have a stake in running the international airport and made an operating profit of around £26million last year.

Glasgow City Council has no plans to bid.

Lack of competition was the main reason for the recommendations by the commission.

Chairman Christopher Clarke said: "We have provisionally found that there are significant competition problems arising from BAA's common ownership of seven UK airports.

"This is evident from a large number of factors including its lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity.

"This has resulted in investment that is not tailored to the requirements of airport users and lower levels and quality of service for both airlines and passengers."

In Scotland, where BAA also owns Aberdeen Airport, he said "separate owners of Edinburgh and Glasgow would improve their offerings".

Mr Clarke added: "BAA has argued to us that there is no scope for competition to develop so long as there are capacity constraints.

"We take the opposite view. Unless the market is opened up to competition, there is a serious risk that the current capacity constraints will persist.

"In Scotland, BAA has until recently been noticeably slow to develop new routes at Glasgow and Edinburgh."

A Scottish government spokesman said "it welcomed the opportunity afforded by competition".

The report had still to be studied in detail but he added: "Competition could bring benefits to Scotland."

Labour transport spokesman Des McNulty said: "If Glasgow Airport is to be sold off, any new owner must show a strong commitment to the city. We need to see continued investment to safeguard jobs and protect the interests of passengers."

Gordon Dewar of BAA Scotland said the firm's opinion was shared by many leading Scots business organisations.

He said: "We remain of the view that Glasgow and Edinburgh airports serve separate markets and that competition between the two is highly unlikely, regardless of ownership.

"We are disappointed the Competition Commission has chosen to take a different view, following what appears to be a flawed analysis of our airports. The consultation that will now follow provides us and others with the opportunity to respond in detail as the investigation enters its next stage.

"However, we strongly believe BAA's stewardship of Aberdeen, Edinburgh and Glasgow airports has served Scotland well.

"We are delivering record investment in our airports, reducing our landing charges year on year, maintaining high levels of customer service for our passengers and ensuring Scotland is better connected to the world than ever before."

Richard Cairns, chief executive of the Glasgow Chamber of Commerce, said: "The relationship Glasgow has with BAA has been very positive. They built a special low-cost terminal for easyJet, for example. We would hope any other operator is as strongly committed to Glasgow."

Sale 'threat' to city jobs

HUNDREDS of jobs could be under threat if Glasgow Airport is sold off.

That was the warning today from leaders of Britain's biggest trade union, Unite, which has repeatedly opposed any attempt to break-up BAA's monopoly.

Brian Boyd, national officer for civil air transport, said: "What seems to be missing from all this talk is that when a monopoly is broken up, it usually affects livelihoods."

He fears a new operator will cut jobs and tear-up existing "hard fought for" terms and conditions.

He added: "We are against any sell-off. We don't think it is necessary, but if it is inevitable, then we would want safeguards put in place for existing staff."

There are more than 450 workers directly employed at Glasgow Airport and an additional 200 at a neighbouring BAA business support centre.

Union leader Donald Munro, who represents airport workers across Scotland, said: "Like many, I have felt that Glasgow Airport was the one most likely to be sold - but BAA have told me not to take it as read.

"However, anyone who comes in and thinks they can run the airport on the cheap by attacking the pay and conditions of my members can think again."