easyJet to challenge Gatwick price rises
15.04.08
easyJet said today that it plans to launch a legal challenge to attempt to overturn a decision to allow BAA to increase landing fees at Gatwick Airport. Fellow British airline bmi said that it also planned a challenge last week.
Following a similar path to bmi, the budget airline announced today that it has informed the UK's Civil Aviation Authority (CAA) of its intention to challenge the price rises imposed by BAA at Gatwick through a judicial review. However, easyJet also said it plans to withhold part of the 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 is allowing BAA to charge at Gatwick and Heathrow. We have informed the CAA 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 after a review by the CAA. Over the next 5 years, BAA will be allowed to increase passenger charges at Gatwick by almost 50% to £8.36 pence; whilst at Heathrow charges could increase by 86% from £10.36 to £19.31.
At the time the CAA said the rises would allow BAA to invest in facilities and to improve its service, whilst BAA claimed the increase was inadequate and airlines condemned it as excessive. easyjet chief executive Andy Harrison said today: ‘We are determined to address a regulatory decision, which we consider to be unlawful and damaging for airlines, our passengers and the industry as a whole.'
He said in a letter to BAA’s new chief executive Colin Matthews: ‘To the extent that our challenge fails, we will hand over the money withheld to you 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.’
The High Court could make a decision on the case by the end of the year if it approves easyJet's application for a review, the Times reports.
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