BAA sues Ryanair over Stansted charges

British airport operator BAA is taking Ryanair to court over its refusal to pay a 15 per cent increase in charges at Stansted…

British airport operator BAA is taking Ryanair to court over its refusal to pay a 15 per cent increase in charges at Stansted airport, Ryanair said today.

Ryanair said in April it would not pay the higher charges imposed by BAA, owned by Spanish firm Ferrovial.
"It's most likely (the matter will result in) a High Court action," a Ryanair spokesman said, adding that the court had not formally notified the carrier yet.

"We are going to fight the action," he said. "We don't think the fees are warranted."

A BAA spokesman said Stansted charges remained within the limits allowed by the regulator, the Civil Aviation Authority.

"This matter is in the hands of the lawyers so it is inappropriate to make any comment at this stage," the BAA spokesman said.

easyJet also said in April it wanted to withhold part-payment of price rises by BAA at Gatwick airport.

Ryanair, Europe's biggest low-cost carrier, said last month it would cut winter capacity at Stansted, its busiest hub, due to high fuel prices and because the cost of using Stansted was too high.

The Dublin-based airline warned last week that it may make its first loss since 1989 because it will respond to the rise in fuel costs and the threat of recession by cutting fares.

Ryanair today reported a 19 per cent year-on-year rise in the number of passengers it carried in July to 5.66 million, but it added that the average flight was slightly less full.

Ryanair said its load factor - a measure of how well a carrier is filling available seats - was 89 per cent in the month, down from 90 per cent in July 2007.

Shares in Ryanair rose more than 15 per cent after benchmark oil prices fell to a three-month low below $119 a barrel at one point, down $28 from July's record highs. The company's shares closed 0.9 per cent lower in Dublin at €2.58.