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Ryanair launches complaint over Stansted charges

28-Jul-2011 11:01 AM

Ryanair has filed a complaint with the UK’s Civil Aviation Authority and Competition Commission about airport charges at BAA-owned London Stansted Airport (Reuters, 27-Jul-2011). Ryanair has stated it wants BAA to revise the current price cap in place at London Stansted. It also said BAA had overcharged airlines for the past five years and had inflated its costs and its regulated asset base. Ryanair added that BAA had doubled its passenger charges despite suffering a 30% decline in business, making Stansted airport uncompetitive. BAA has rejected Ryanair’s complaints, with a spokesman saying "it is interesting that the timing of Ryanair's current complaint coincides with the public debate about whether the Competition Commission's decision to force the sale of Stansted is the right one”.

Ryanair: "BAA Stansted's regulatory accounts show numerous examples of unexplained costs being transferred to Stansted by BAA and Heathrow which inflates Stansted's costs and understates Stansted's profits, while boosting those of the BAA Group and Heathrow," Ryanair, company statement. Source: Reuters, 27-Jul-2011.

BAA: "Ryanair doesn't pay a penny more than the regulator allows, and less than they would pay at Gatwick. The charges Ryanair are referring to have been scrutinised by the Competition Commission and comply with the price cap set by the CAA. They have also been in place for two years. We do not believe Ryanair has any case for legal action." Company statement. Source: Reuters, 27-Jul-2011.