Bmi has appealed to the Civil Aviation Authority (CAA) to intervene regarding BAA proposals to changes in its charging system at Heathrow, which it says will almost double fees for smaller aircraft.
Currently the airports authority charges aircraft by their weight, but it wants to charge ”per movement” irrespective of size. Bmi is Heathrow”s second largest user.
”This will have a detrimental impact upon those operators using smaller aircraft to provide short haul and domestic services who will have to pay more per passenger than their long haul competitors,” said bmi chief operating officer Nigel Turner. ”Only a monopoly provider with inadequate regulation could possibly get away with increases in prices of this magnitude when the reputation for service provision at Heathrow is at an all time low.
”A regulatory authority must regulate, not sit by and watch. It must robustly defend and protect the interests of the consumer and ensure Heathrow has efficient services that are delivered cost effectively.”
It would be passengers who would ultimately feel the pinch, as airlines would pass on costs by hoisting prices. And Turner points out it could have dramatic effects for services because carriers would simply avoid London.
”Airports in Paris, Amsterdam and Frankfurt will be celebrating if these increases go ahead, as many UK regional airports will have stronger links with them than with Heathrow in the future. Once broken, the regional links will not easily be restored.”
The situation appears unclear however. Talking to ABTN, a CAA spokesman said the decision was not part of its remit ” ”Our five-year review of airport charges doesn”t cover this area, but if an airline in the future thinks rules are unfair they could come to us and ask for a hearing.”
But a BAA spokesman said: ”We are currently in negotiations with all of our airlines around charges and we have tabled a proposal in attempt to accommodate bmi's concerns.
”We believe that there is a general consensus that Heathrow needs to be transformed for the benefit of passengers and airlines alike. However, such plans carry a price and we believe that the current CAA proposal underestimates that price. It is for this reason that we are arguing for further price increases though we recognise the limitation of a ”one price fits all” regime.”
It believes the CAA ” which is consulting on the price cap settings for a five year period starting 1 April 2009 - must approve this policy, but it appears that bmi”s appeals to the authority have some way to go.