CAA says Stansted ‘inefficient’
29.04.08
The Civil Aviation Authority (CAA) said today that Stansted Airport 'could improve its efficiency and the flow information to airlines'. The news came as the UK airport regulator referred the airport to the Competition Commission ahead of setting price controls on what airlines can be charged to use it for the five years from April 2009.
The CAA's report says that analysis of Stansted's operating costs had found some scope for its under-fire owner to run it with greater efficiency, while BAA could also have put across its plans to expand the hub more clearly to the airlines.
The report also lays out six possible types of Stansted price-caps for the Competition Commission to consider, but director of economic regulation Harry Bush said the final ruling would depend on how much competition was seen to exist between Stansted and nearby airports, adding that he believed Stansted competed effectively with Luton and East Midlands airports.
By the way, if you think that you can hear drums, you are mistaken. It's Ryanair and Micheal O'Leary thumping out a new press release on the 'BAA monopoly'. It will hit our desk in the morning, and your screens tomorrow. You have been warned.
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