BAA is facing a backlash from cheap flights rivals Ryanair and easyJet as both carriers threatened to withhold payments to the airport owner after further disagreements over landing fees at Gatwick and Stansted.
Ryanair confirmed that if BAA "continues to abuse its monopoly” and impose the highest possible fees on the Irish airline, then it will refuse to pay the latest 7% price increases at Stansted.
Ryanair chief executive Michael O'Leary said: "These latest unjustified price hikes by the BAA airport monopoly prove that it is abusing its monopoly power over passengers and airlines at Stansted. They also prove that the CAA is an incompetent and incapable regulator which has yet again put the financial needs of the Spanish-owned BAA airport operator above the interests of airport users and consumers which it is obliged by law to protect."
Taking a similar stance, EasyJet chief executive Andy Harrison has already composed a letter to BAA chief executive Colin Matthews, requesting a deferral of payments until a high court judge has had the opportunity to complete a judicial review. The fees at Gatwick have been increased to £6.97 per passenger.
"We will hold back a proportion of the £6.97 you have been permitted to charge for each passenger at Gatwick. We will keep the money in a separate account. To the extent that our challenge fails, we will hand over the money withheld to you along with any interest accrued. If our challenge succeeds, and a lower charge is then set, we will implement a mechanism to return what we have saved to our customers," said Harrison.
The Civil Aviation Authority (CAA) have said that actions taken by the low cost carriers were “against the law” and a breach of contract. BAA have declined to comment.
