12 March 2008

BAA and CAA under fire from Flybe

BAAââ¬â¢s monopoly should be broken up and the Civil Aviation Authority replaced as industry regulator, Flybe has demanded.

The call came in the wake of the CAA announcing that airports operator BAA would be allowed to increase landing charges by up to 21.3% at Heathrow and Gatwick.

The airlineââ¬â¢s chief commercial officer Mike Rutter said: ââ¬ÅâœIn any marketplace where the airlines are exceptionally competitive, to award what are essentially monopolistic profits and a license to print money to an unproductive and uncompetitive company is nothing short of a national disgrace.

ââ¬ÅâœWe always knew that the CAA cared little about the UK regions but this announcement proves it, as they reward BAA for years of failure and profligacy with a fat cat rise.ââ¬~

He continued: ââ¬ÅâœWe call on the Competition Commission to break up BAA, an organisation now owned by a debt-ridden company who clearly have no interest in the well-being of the UK economy.

ââ¬ÅâœIt is also time for [transport secretary] Ruth Kelly to urgently review the position of the CAA in regulating aviation and to overturn the CAA ruling in the same way as they recently did in Stansted.ââ¬~

*See previous TravelMole story.

by Phil Davies

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