easyjet legal challenge to airport charges?
23.03.08
easyJet has refused to comment on a report in the Sunday Times claiming it plans to challenge a decision to increase landing fees at Heathrow and Gatwick airports. It says that the legal move is 'the culmination of a bitter row between airlines, the CAA and BAA'. A spokesman for the airline said: 'I cannot give you any kind of comment about that because it's pure speculation.'
The newspaper says easyJet plans to request a judicial review of the Civil Aviation Authority's (CAA) decision to allow BAA big increases in landing charges at Heathrow and Gatwick over the next five years. The CAA said the rises would allow BAA to invest in facilities and improve its service. BAA said the increase was inadequate.
easyJet has retained London law firm Lane & Partners as its adviser and informed the CAA and BAA nine days ago of its move to seek a review, the Times reports. It adds that easyJet is expected to formalise a claim to the High Court within a month and, if the court accepts it has a case, arguments could take another six months, with a decision possible by the end of the year.
Rival no-frills carrier Ryanair Holdings said yesterday it would join the action and bmi - the second biggest airline at Heathrow - is also expected to take part, the Sunday Times said. Virgin Atlantic is undecided and BA is unlikely to participate, it adds.
If the judicial review goes ahead, it will be the first time the CAA has been challenged since it began regulating airports 20 years ago, and could threaten Ferrovial's plans to refinance the loans taken on to buy the company.
A CAA spokesman told the newspaper that it had no record of being notified of easyJet’s intentions, but would ‘vigorously defend’ its position.
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