easyJet labels £1bn cost "extraordinary"
Airlines have called on BAA to scrap an "extraordinary" £1bn investment plan at Gatwick airport.
Members of Gatwick's Airline Operators Committee (AOC), which include British Airways, easyJet and Ryanair, are said to be concerned over the extra cost to passengers.
The plan includes a new £200m aircraft pier to be built at Gatwick's North Terminal and improvements to other facilities.
easyJet today (May 26) confirmed reports that AOC members had labelled the plans unnecessary with an "unproven" business case.
The cost of airport improvements could be passed on to passengers at a time when most major airlines are already suffering from an industry-wide slump in demand.
Gatwick Airport has suffered a 12% drop in passenger figures this year as the global economic downturn hits demand for travel.
A spokesman for easyJet's confirmed that a letter had been sent to BAA from the AOC outlining its concerns.
easyJet said it was an "extraordinarily high" amount of money to spend "for tinkering at the edges".
A spokesman for BAA said all airlines at Gatwick and the UK Civil Aviation Authority (CAA) had been fully involved in the £1bn "capital investment programme".
"The basic principles of it had been agreed with the airlines and the CAA as part of the regulatory process but the way in which it is actually spent," the spokesman said.
BAA said it was still in talks over how the money is actually spent.
The North Terminal's proposed new pier would allow the airport to hit its 95% "pier-served" passenger target, BAA said.
BAA said airlines had known about the £1bn cost for some time, when it was asked about concerns that passengers would ultimately have to foot the bill.
"The agreement is between us and the airlines. How the airlines then pass that on to their passengers is a question for them," BAA said.
"Whether that means they now feel that they have to put up their charges that would really be a question to pose to the airlines."
Improvements to facilities are a requirement of the CAA in order to maintain an airport's place "in the economy", BAA said.
"It is a process called ‘constructive engagement' and it is very much negotiated with the airlines and regulators."
Bids are currently being considered for Gatwick after competition regulators ordered BAA to sell the airport.
The AOC said any long-term plans should be agreed with potential owners.
Airport operator MAG is understood to be the only remaining bidder after Global Infrastructure Partners (GIP) withdrew its bid last week.
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Gatwick Airport's North Terminal |
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