easyJet Seeks to Protect Gatwick Customers
easyJet has had its application to review increased charges at London Gatwick Airport rejected, according to a report on thisislondon.co.uk.
The airline called for a judicial review to challenge the 50 per cent rise in fees for landing and taking off at the airport, which the airline has maintained was arranged unlawfully. It claimed that the Civil Aviation Authority (CAA) granted the increased fees to BAA – Gatwick’s operator – through “one-sided discussions”, having closed the consultation process on the matter in January last year.
This consultation was subsequently re-opened for BAA to increase the charges to £1.3 billion through to 2013. According to the press release issued by easyJet: “The judge said that it was “understandable” that we felt we had been treated unfairly by the CAA; however he concluded that given its status as a “specialist regulator”, the outcome of its actions was not “so unfair” that it entitled the High Court to intervene.”
The decision, which easyJet are planning to appeal against, has come at the same time as BAA admitted to making more than it expected profitwise from Gatwick this year, in excess of £73 million more. BAA has been told by the Competition Commission to sell the Gatwick business but has, as yet, failed to find a buyer.
easyJet’s statement continued: “Passengers must be protected with strong airport regulation. If a 50 per cent increase in charges without any discernible increase in capacity is permitted at a regulated airport, what would happen if the price caps (preventing airports from charging what they want) were to be removed?
“Secondly, it highlights the problem of concentrating so much power and discretion in a single regulator without the meaningful rights of appeal for airlines. How else are passengers’ interests to be protected?”
Travel Industry news posted by Dan Brown on 03 July 2009
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