|
Virgin Atlantic Airways today gave a mixed welcome to the Civil Aviation
Authority's announcement on its review of BAA London airport charges. Steve
Ridgway, Chief Executive of Virgin Atlantic, commented:
"Virgin Atlantic is pleased that the CAA has decided to retain the 'single till'
approach to airport regulation. This is a triumph for common sense, a vindication of the Competition Commission's views and a real victory for the
airlines. We are also pleased that the CAA is proposing a clawback of over
£500m of capital expenditure 'prefunded' by airlines and intended for Terminal 5. We also welcome the proposal that airlines should receive
rebates from BAA if service standards are not met.
"However, we are extremely disappointed that the level of charges proposed
by the CAA for Heathrow will increase to RPI +6.5% per year. This means an
increase in charges by around 40% over the next five years. These increases
are wholly unjustified - calculations based on BAA's own figures show that
all of BAA's capital expenditure including T5 could be funded without any
increase in charges. It is difficult to see how the airlines can avoid passing
these extra costs onto passengers."
Virgin Atlantic
said it will study the full detail of the CAA's proposals before submitting its formal response. |
