Virgin Atlantic considers legal options after CAA decision on BAA

Virgin Atlantic today criticised the Civil Aviation Authority (CAA)'s decision to allow BAA to increase landing charges at Heathrow by almost 40% over the next five years and said it was now considering its legal position.

BAA will be allowed to increase its charges at Heathrow by RPI+6.5% each year over the five years commencing 1 April 2003. The investment the higher charges are intended to go towards will not come on-line before 2008 - meaning that airlines and passengers will receive no benefits from the higher charges while BAA will receive a huge increase in revenue.

Sir Richard Branson, Chairman of Virgin Atlantic Airways, said today:

"This is sheer madness. At a time when fuel prices are at $40 per barrel and when BAA is still making massive profits whoever suggested that it be allowed to raise its charges to airlines by 40% must be off their heads. It begs the question who regulates the regulators.

"We will fight this proposal tooth and nail or we'd have no choice but to pass these increases on in fares."

Asking airlines and passengers to pay for investment before it is delivered is unacceptable, particularly when the supplier is a monopolist, Virgin stated.