Ryanair files suit against UK airport operator

Ryanair today began legal proceedings against UK airport operator BAA over what it alleges is a monopoly abuse of fuel levies…

Ryanair today began legal proceedings against UK airport operator BAA over what it alleges is a monopoly abuse of fuel levies by BAA.

The move follows the announcement yesterday that BAA is suing Ryanair over what it claims is non-payment of £1 million sterling (€1.5 million) landing fees at Stansted Airport.

In a statement today, Ryanair alleges that BAA imposed a levy to defray the cost of building a £12.5 million sterling fuel system at Stansted.

The airline claims that despite repeated assurances from BAA that the levy will be lifted when the capital costs are recovered, the airports operator has now recovered £34 million in fuel levies.

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Ryanair also accused BAA of price gouging because it was a dominant airport operator on both low fare airlines and their passengers in three London airports.

BAA says a High Court writ that was issued against Ryanair after a 4 p.m. deadline yesterday was not complied with. Ryanair, along with other airlines, benefits from a airport charges discount from BAA connected to the expansion of Stansted.

Ryanair now faces a doubling of its airport charges at Stansted. The airline claims the agreement on reduced charges runs until 2007.

Ryanair is also appealing a €2.74 million European Commission fine over the level of subsidies at Charleroi Airport in Belgium.

Ryanair will issue first-quarter results at the start of August.

David Labanyi

David Labanyi

David Labanyi is the Head of Audience with The Irish Times