easyJet Withholds Price Increases Imposed at Gatwick Airport By BAA

easyJet has informed British Airways Authority that it intends to withhold part of the price increase being imposed on it at Gatwick Airport, pending the outcome of a judicial review.

In a letter to British Airways Authority’s (BAA) new CEO Colin Matthews, easyJet CEO Andy Harrison repeats the airline’s strong objection to the 21% increase in passenger charges and has given BAA until April 16, 2008, to agree the principles of this arrangement.

easyJet and other airlines have been incensed by the dramatic price increases that the UK Civil Aviation Authority (CAA) is allowing BAA to charge at Gatwick and Heathrow and has informed the CAA of its intention to challenge the Gatwick prices rises through a judicial review.

Over the next five years, the regulator will allow charges at Gatwick to increase by 49% from GBP5.61 to GBP8.36, whilst at Heathrow charges will increase by 86% from GBP10.36 to GBP19.31.

These increases, which will inevitably hurt consumers, follow a substantial increase in charges at Heathrow and Gatwick in the past five years and a doubling of charges at Stansted in 2007.