easyJet legal challenge to airport charge increases?
23.03.08
Budget easyJet has refused to comment on a report in the Times claiming it plans a legal challenge to a decision to increase landing fees at Heathrow and Gatwick airports. The newspaper says that the legal move is 'the culmination of a bitter row between airlines, the CAA and BAA'. A spokesman for the airline said: 'I cannot give you any kind of comment about that because it's pure speculation.'
The newspaper says easyJet plans to request a judicial review of the CAA's decision to allow BAA big increases in landing charges at Heathrow and Gatwick over the next 5 years starting April 1. The CAA said the rises would allow BAA to invest in facilities and improve its service. BAA said the increase was inadequate.
easyJet has retained law firm Lane & Partners as its adviser and informed the CAA and BAA 9 days ago of its move to seek a review, the Times reports. It adds that easyJet is expected to formalise a challenge in the High Court within a month and, if the court accepts it has a case, arguments could take another 6 months, with a decision possible by the end of the year.
Rival no-frills carrier Ryanair said it would join the action and bmi - the second biggest airline at Heathrow - is also expected to take part, the Times said. Virgin Atlantic is undecided and BA is unlikely to participate, it adds.
If the judicial review goes ahead, it will be the first time the CAA has been challenged since it began regulating airports 20 years ago, and could threaten Ferrovial's plans to refinance the loans taken on to buy the company.
A CAA spokesman told the newspaper that it had no record of being notified of easyJet’s intentions, but would ‘vigorously defend’ its position.
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