easyJet challenges Gatwick price rise
15.04.08
easyJet plans a legal challenge to attempt to overturn a decision by the UK's aviation regulator to allow BAA to increase landing fees at Gatwick. Fellow British airline bmi (the second biggest airline at Heathrow) said last week that it planned a challenge.
The budget airline announced today that it has informed the UK's Civil Aviation Authority (CAA) of its intention to challenge the price rises allowed BAA at Gatwick through a judicial review. easyJet also plans to withhold part of the fee increase at Gatwick until it knows the outcome of the review.
In a statement easyJet said: ‘We and other airlines have been incensed by the dramatic price increases that the CAA has allowed BAA. We have informed them of our intention to challenge the Gatwick price rises through a judicial review.'
Fees at Gatwick were allowed to increase by 21% to £6.97 for each passenger on April 1. Over the next 5 years, BAA will be allowed to increase passenger charges by almost 50% to £8.36 pence; whilst at Heathrow they could increase by 86% from £10.36 to £19.31.
At the time the review was announced just weeks ago, the CAA said the rises would allow BAA to invest in facilities and to improve its service, whilst BAA said that the increases were inadequate.
easyjet chief executive Andy Harrison said today: ‘We are determined to address this regulatory decision, which we consider to be unlawful and damaging for airlines, passengers and the industry as a whole.'
He said in a letter to Colin Matthews, BAA’s new chief executive: ‘To the extent that our challenge fails, we will hand over the money withheld along with any interest accrued. If our challenge succeeds and a lower charge is set, we will implement a mechanism to return what we have saved to our customers.’
If it approves easyJet's application for a review, the High Court could make a decision on the case by the end of the year, the Times reports.
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