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easyJet refutes Gatwick charges

10:50am GMT, Monday, 29 June 2009

easyJet is “disappointed” with the High Court ruling that CAA price charges at Gatwick are fair. easyJet is “disappointed” with the High Court ruling that CAA price charges at Gatwick are fair.

easyJet is disappointed with today’s (29 June) decision by the High Court to reject a Judicial Review of charges at Gatwick Airport, which it claims will result in passengers paying 50% more in charges over the next few years.

On 8 March 2008, the Civil Aviation Authority (CAA) published its final consultation on price controls for both Heathrow and Gatwick airports from 1 April 2008 to 31 March 2013. It set Gatwick’s maximum charge per passenger at £6.79 – a 21% increase from the previous cap of 2007/08 – to pay for “essential modernisation and improvements in services”.

However, easyJet stated that passengers will now have to pay more, even though there is no consideration of an additional runway or new terminal being built at Gatwick.

In a statement, easyJet said: “Today’s decision highlights two important issues. Firstly, it demonstrates that passengers must be protected from the monopoly powers of Gatwick’s new owners with continued strong airport regulation – if a 50% increase in charges without any discernable increase in capacity is permitted at a regulated airport what would happen if the price caps were to be removed?

“Secondly, it highlights the problem of concentrating so much power and discretion in a single regulator without the necessary checks and balances.”

The CAA is pleased with the High Court’s decision to dismiss easyJet’s claim that the CAA’s price control decision was “legally flawed”. Harry Bush, CAA’s Group Director of Economic Regulation, said: “The CAA is pleased with the outcome of this Judicial Review. This provides an opportunity to draw a line under the most recent price control reviews of Heathrow, Gatwick and Stansted and to focus on future regulation of airports.”

Categories:
Business, Leisure, Travel & Tourism
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