Competition authority rules unfair advantage at Keflavik

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**TRW EXCLUSIVE** The Icelandic Competition Authority (ICA) has ruled that Keflavik airport landlord and principal operator Leifur Eiriksson Airport has abused its position to give itself an advantage over other operators during the airport's current tender process

The ICA has told Leifur Eiriksson to delay the announcement of qualified bidders, already postponed by one month from mid-December, until June 1 2003.

In the case, filed by rival operator Icemart last September, Leifur Eiriksson was charged with granting itself the best retail sites and most profitable categories before opening the tender. It was also criticised for not separating the two aspects of its business - landlord and operator - financially. ICA upheld both complaints, and ordered the company to divide the two businesses to ensure they act as independent companies, with distinct administrations and boards. The complaints committee said it would prefer all categories to be tendered publicly.

One operator commented: "Of course we are very happy as it represents a total victory in our struggle."

However, Leifur Eiriksson duty-free managing director Hoskuldur Asegeirsson told TRW the decision was not final, and said the company's board would be meeting to decide whether or not to appeal against ICA's findings. He said that an appeal was "not unlikely".