Ryanair and easyJet have reacted angrily once again to the Civil Aviation Authority”s (CAA) price cap proposals for Stansted Airport, which it handed in to the Competition Commission yesterday (29 April).
Since its January consultation document, the regulator says it has added a sixth option ”identified by airlines in their responses” for charges at the airport for the five year period from 1 April 2009.
The different caps could involve a doubling of passenger charges in that period.
CAA group director of economic regulation Dr Harry Bush said: ”Devising an approach to regulating Stansted is unusually challenging. It needs to take proper account of uncertainties around forecasting of market trends, the scale of the proposed investment and the strongly held ” but sharply differing ” views of the airport and its principal airline customers. And, importantly, to do so in a way that benefits passengers.”
The Competition Commission”s own market inquiry into BAA”s operation of airports could affect the choice of option.
”The extent to which Stansted is ” and can be ” subject to competitive pressure should inform the design and level of the price cap for Stansted as this will affect pricing and investment at other airports and the prospects for future competition.”
Ryanair ” the single biggest user ” was typically apoplectic and renewed its calls for Bush to lose his job. Ryanair head of legal and regulatory affairs Jim Callaghan said: ”Ryanair renews its call for this failed regulator to be dismissed and for the Commission to recommend the immediate break-up of the BAA monopoly so that the three London airports can be spun out into separate ownership and competition can finally be introduced into the London airports market.”
EasyJet CEO Andy Harrison said: ”The Competition Commission has recently presented evidence of how BAA has been abusing its market power and failing to respond to needs of customers, so it is hard to understand why the CAA are failing to act. Stansted needs to be regulated more effectively, not let off the leash to exploit the airlines and our passengers.”
Both carriers were delighted in February when Transport Secretary Ruth Kelly turned down the CAA”s recommendation to de-regulate Stansted, which would have allowed owner BAA to set its own charges.
The Commission will report on the caps in October, following which the CAA will publish more proposals before the end of the year.