Ryanair wants investigation in to fuel costs at Belfast and Prestwick airports
16.10.08
Ryanair has called on the Office of Fair Trading (OFT) to investigate price rises in aviation fuel at Belfast City and Prestwick Airport. It wants a probe into Air BP's ‘unjustified attempts to impose monopoly increases of over 50%’ on the delivery of fuel.
The budget airline said Air BP, which has a ‘complete monopoly’ on the fuel at the airports, has not explained the rise. Ryanair said it has repeatedly written to the fuel provider asking for an explanation for ‘these rapacious increases’ but claimed Air BP had ‘refused to provide any valid justification’.
Jim Callaghan, Ryanair's director of legal and regulatory affairs, said: ‘Air BP has a complete monopoly on the supply of aviation fuel at these airports and is abusing this position to unilaterally impose over 50% cost increases (over 10 times the rate of inflation). This abuse comes at a time when BP and the other oil majors are making billion pound profits at the expense of the aviation industry, which is currently in crisis,’ he added.
Air BP, which provides air services and fuels, said the prices were reasonable. The firm said prices are agreed ‘by mutual negotiation’, and must ‘reflect current market and cost environments’. It said it was ‘confident’ that it had not breached any competition laws and was surprised by Ryanair's decision to involve the OFT.
The fuel supplier said the increases are a result of rising oil costs and a downturn in business - despite the fact that latest figures show Belfast City to be Britain's fastest growing airport. Mr Callaghan said Belfast City Airport had made it known to the airlines that if Air BP and Ryanair are unable to agree on pricing, then they will be looking at introducing alternative suppliers.
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