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| Version 5 | Version 6 |
|---|---|
| BAA to raise airport landing fees | BAA to raise airport landing fees |
| (2 days later) | |
| Air passengers will face a rise in ticket prices of about £2 after new landing charges for Heathrow and Gatwick airports were announced. | Air passengers will face a rise in ticket prices of about £2 after new landing charges for Heathrow and Gatwick airports were announced. |
| The Civil Aviation Authority (CAA) has allowed airports operator BAA to lift its fees to pay for better facilities and more stringent security measures. | The Civil Aviation Authority (CAA) has allowed airports operator BAA to lift its fees to pay for better facilities and more stringent security measures. |
| Charges can rise by 23.5% at Heathrow in the year 2008/2009, and increase by 21% at Gatwick, the CAA said. | Charges can rise by 23.5% at Heathrow in the year 2008/2009, and increase by 21% at Gatwick, the CAA said. |
| The increases were criticised by airlines including British Airways. | The increases were criticised by airlines including British Airways. |
| "When BAA's new owners, Ferrovial, bought them, the CAA said they would not be influenced by Ferrovial's high debt levels," said Paul Ellis, BA's airport policy and infrastructure general manager. | "When BAA's new owners, Ferrovial, bought them, the CAA said they would not be influenced by Ferrovial's high debt levels," said Paul Ellis, BA's airport policy and infrastructure general manager. |
| Today's settlement is very good news for the airports operator and its owner Robert Peston,BBC News business editor Read Robert's blogQ&A: Airport charges | Today's settlement is very good news for the airports operator and its owner Robert Peston,BBC News business editor Read Robert's blogQ&A: Airport charges |
| "In practice, they have ignored their own policy and caved in to intense pressure from BAA by setting excessive price increases. | "In practice, they have ignored their own policy and caved in to intense pressure from BAA by setting excessive price increases. |
| "Heathrow passengers will pay, on average, 17% more than the Competition Commission recommended in September 2007," he added. | "Heathrow passengers will pay, on average, 17% more than the Competition Commission recommended in September 2007," he added. |
| Large scale | Large scale |
| However, BAA, which is owned by a group headed by Spain's Ferrovial, said that the changes did not go far enough. | However, BAA, which is owned by a group headed by Spain's Ferrovial, said that the changes did not go far enough. |
| "The review does not recognise sufficiently: the scale of the task we are embarked on; the pressures of handling such large infrastructure projects; the full cost of the increased security requirements; as well as the impact of the credit market turmoil," BAA said in a statement. | "The review does not recognise sufficiently: the scale of the task we are embarked on; the pressures of handling such large infrastructure projects; the full cost of the increased security requirements; as well as the impact of the credit market turmoil," BAA said in a statement. |
| Ferrovial is heavily in debt and there have been repeated calls for BAA's monopoly as airport operator to be broken up. | Ferrovial is heavily in debt and there have been repeated calls for BAA's monopoly as airport operator to be broken up. |
| BAA has a monopoly over the big three London airports - Heathrow, Gatwick and Stansted - and its landing charges are fixed by the CAA. It is currently the subject of a Competition Commission inquiry. | BAA has a monopoly over the big three London airports - Heathrow, Gatwick and Stansted - and its landing charges are fixed by the CAA. It is currently the subject of a Competition Commission inquiry. |
| BAA believes the increase will not be enough to pay for £6.5bn rebuilding work at Heathrow and ageing facilities at Gatwick. | BAA believes the increase will not be enough to pay for £6.5bn rebuilding work at Heathrow and ageing facilities at Gatwick. |
| Also, security costs have spiralled since the 9/11 attacks in the US, and BAA, along with other British airport operators, have to cover the costs themselves. | Also, security costs have spiralled since the 9/11 attacks in the US, and BAA, along with other British airport operators, have to cover the costs themselves. |
| Blushes | Blushes |
| The BBC's business editor Robert Peston said there was clear winner. | The BBC's business editor Robert Peston said there was clear winner. |
| "Today's settlement is very good news for the airports operator and its owner, the consortium led by Ferrovial of Spain," he said. | "Today's settlement is very good news for the airports operator and its owner, the consortium led by Ferrovial of Spain," he said. |
| "The airlines will squeal because Heathrow and Gatwick are being allowed to increase what they charge them from 1 April by far more than could have been expected. | "The airlines will squeal because Heathrow and Gatwick are being allowed to increase what they charge them from 1 April by far more than could have been expected. |
| "BAA will express disappointment with elements of the settlement, notably that there has been no increase in the cost-of-capital assumptions that underpin the pricing proposals. | "BAA will express disappointment with elements of the settlement, notably that there has been no increase in the cost-of-capital assumptions that underpin the pricing proposals. |
| "But BAA is largely trying to spare the blushes of the regulator." | "But BAA is largely trying to spare the blushes of the regulator." |