easyJet to fight Gatwick price rises
15.04.08
easyJet said today that it plans to launch a legal challenge to try to overturn a decision by airport operator BAA to increase landing fees at Gatwick Airport. Fellow British airline bmi said that it also planned a challenge last week.
Like bmi, the Luton-based budget announced today that it has informed the UK's Civil Aviation Authority of its intention to challenge the price rises imposed by BAA at Gatwick through a judicial review. easyJet also said it plans to withhold part of the increase at Gatwick until it knows the outcome of the review.
easyJet said in a statement: ‘We and other airlines have been incensed by the dramatic price increases that the UK Civil Aviation Authority (CAA) is allowing BAA to charge at Gatwick and Heathrow and have informed the CAA of our intention to challenge the Gatwick prices rises through a judicial review.'
Fees at Gatwick were allowed to increase by 21% to £6.97 for each passenger on April 1 after a review by the CAA. Over the next five years, it will be allowed to increase passenger charges at Gatwick by almost 50% to £8.36 pence; whilst at Heathrow charges will increase by 86% from £10.36 to £19.31. The CAA said the rises would allow BAA to invest in facilities and to improve its service. BAA claimed the increase was inadequate.
Andy Harrison, easyjet chief executive, said: ‘We are determined to address a regulatory decision, which we consider to be unlawful and damaging for the airlines, our passengers and the industry as a whole.'
The budget airline said in a letter to BAA’s new chief executive Colin Matthews: ‘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.’
The High Court could make a decision on the case by the end of the year if it approves easyJet's application for a hearing, the Times reports.
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