Ryanair writes to BAA Stansted to object to passenger charges increase

Airline Industry Information,  April 16, 2008  

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AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

Ryanair has announced that it wrote on 7 April to BAA Stansted, in objection to the proposed 7% increase in passenger charges at the airport, which it claimed are unjustified, since they follow a 100% increase in passenger charges imposed in April last year, by BAA Stansted.

Ryanair said the price increases amount to a 107% passenger charge increase over a 12 month period, 35 times the current inflation rate. It claimed that BAA is also seeking to make another 100% increase in charges at the airport over the next five years.

According to the airline, it is still waiting for a response to the letter but confirmed it plans to launch judicial review proceedings should BAA Stansted continue to impose the maximum allowed price increases. Ryanair also stated that it would withhold the latest increases, placing them in an escrow account, until the outcome of its proceedings at Stansted.

The airline said that BAA is not obliged to increase its prices to the maximum permitted cap, but continues to do so, even though it already benefits from traffic figures at the airport which are reportedly ahead of forecast, with Capex spending behind budget.

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