Ryanair's Cautious Welcome on Stansted Pricing

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White Cap
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Ryanair's Cautious Welcome on Stansted Pricing

Beitrag von White Cap »

Ryanair News
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News Release
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09.12.08
Ryanair's Cautious Welcome on Stansted Pricing
WITH RENEWED CALL FOR BREAKUP OF BAA MONOPOLY

Ryanair, Europe’s largest low fares carrier, today (9th Dec) delivered a cautious welcome to the UK Civil Aviation Authority’s (CAA’s) confirmation that it would adopt the recommendations of the Competition Commission (CC) on prices at Stansted for the next 5 years, as it once again called for the break-up of the BAA monopoly and the immediate sale of Stansted Airport in order to deliver real competition to London.

The Competition Commission has done Trojan work in reviewing the abusive practices of the BAA and has disallowed huge amounts of wasteful expenditure. It would therefore have been unthinkable for the CAA to ignore the CC’s findings.

Ryanair also welcomed the decision by the CAA to adopt CC’s recommendations regarding penalties for the abysmal service quality at Stansted, as graphically highlighted by the serious security breach at Stansted yesterday and the unacceptable security queues over the past two years.

However, Ryanair confirmed that the CC’s findings underlined the urgent need for the BAA monopoly to be broken up in order to introduce competition into the London airports market. Ryanair highlighted that the prices determined by the current regulatory regime, which the CC has now identified as being seriously flawed, are well out of line with what efficient, competitive airports around Europe are now offering.

Speaking today, Ryanair’s Director of Legal and Regulatory Affairs, Jim Callaghan, said:

“The CAA has rightly followed the recommendations of the Competition Commission, which conducted a thorough review of BAA’s abusive practices at Stansted airport. BAA consistently ignores the requirements of users in order to build grossly expensive facilities and provides very poor service levels to customers, as witnessed by yesterday’s unacceptable serious security breach and horrendous security queues.

“The CAA has for years presided over this mess, refusing to intervene and rubber stamping large price increases by the regulated monopoly. Finally, the weight of evidence produced by the CC has embarrassed the CAA into seeing sense.

“However, the prices announced by the CAA today are still out of line with what efficient airports are now offering throughout Europe and only competition between the three main London airports will achieve better services and competitive prices.”
' Fiat Justita'
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