Competition Commission wants Aberdeen Airport passenger rebate
06.01.09
The UK competition watchdog is calling for Aberdeen Airport to make a rebate of £1 per passenger to airlines in an attempt to promote investment in the north-east gateway, the Press & Journal reports. The move – combined with a formal price cap linked to inflation – would result in Aberdeen Airport’s charges and operating profits per traveller reduced to a level comparable with other BAA-owned Scottish airports, the Competition Commission said yesterday. However, the rebate would be reduced as investment increased, or scrapped if capital expenditure at the airport exceeded depreciation by £25 million over the next few years.
Based on 2007-08 figures, a rebate of £1 per passenger – about 15% of airport charges – would reduce the average traffic charge per traveller using the airport to £5.72. This would still leave it higher than Glasgow, Edinburgh and Gatwick but on a par with Stansted and below Southampton.
BAA has said that a higher level of charges at Aberdeen results from increased costs per traveller, but the Competition Commission said this alone did not explain the disparity with other airports. The commission said: ‘Aberdeen’s operating profit per passenger is higher than BAA’s other Scottish airports and higher than any other BAA airport except Heathrow.’
Airport managing director Kevin Brown told the newspaper: ‘We will carefully consider the provisional remedies that the Commission has proposed and will respond fully.’ Aberdeen North MSP Brian Adam added: ‘The proposal put forward by the commission is an interesting one. It will hopefully provide a new incentive for BAA to invest in Aberdeen.’
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