Virgin Atlantic criticised the Civil Aviation Authority (CAA)`s decision to allow BAA to increase…
Virgin Atlantic criticised the Civil Aviation Authority (CAA)`s decision to allow BAA to increase landing charges at Heathrow by almost 40% over the next five years and said it was now considering its legal position.
BAA will be allowed to increase its charges at Heathrow by RPI+6.5% each year over the five years commencing 1 April 2003. The investment the higher charges are intended to go towards will not come on-line before 2008 – meaning that airlines and passengers will receive no benefits from the higher charges while BAA will receive a huge increase in revenue.
Richard Branson, Chairman of Virgin Atlantic Airways, said: This is sheer madness. At a time when fuel prices are at $40 per barrel and when BAA is still making massive profits whoever suggested that it be allowed to raise its charges to airlines by 40% must be off their heads. It begs the question who regulates the regulators.
We will fight this proposal tooth and nail or we`d have no choice but to pass these increases on in fares.
Asking airlines and passengers to pay for investment before it is delivered is unacceptable, particularly when the supplier is a monopolist. Moreover, BAA is making massive profits (according to its Chief Executive), at a time when airlines are bearing the brunt of the effects of 11 September 2001, the underlying economic downturn, and the threat of war with Iraq.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
