easyJet Profile

The CAA’s proposal to allow BAA to increase charges above inflation at Gatwick every year - instead of demanding real price cuts – is a step backwards and unwinds much of the good work of the CAA over the last few years.

Under the proposals BAA will be allowed to recover inflation plus up to 2% every year at Gatwick Airport over the course of the next five years – without providing any discernable benefits to air travellers that they shouldn’t be providing already.

easyJet is calling on the Competition Commission to carry out a full investigation into whether the UK’s major airports are being run in the interests of the travelling public – or to help Ferrovial repay its massive debt mountain.

Andrew Barker, easyJet Planning Director, said:

“Today’s announcement that the Office of Fair Trading has referred BAA to the Competition Commission clearly demonstrates that there is a problem with the running of our major airports. So, we are disappointed that the CAA is recommending a deal that is so obviously pro-BAA.

“Ferrovial, the Spanish construction firm, paid £11bn (significantly above the market price) to acquire BAA last year. They would only have paid such a premium if they felt there was scope to reduce costs or increase prices – the CAA is helping them achieve the latter. Ferrovial is the clear winner from today’s announcement and the air traveller is the clear loser.

“Let’s hope that the CAA uses the extra time it has given itself to force a more pro-consumer solution at Stansted Airport.”

Date posted: 30-Mar-07