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Ryanair seeks probe on fuel cost | Ryanair seeks probe on fuel cost |
(about 2 hours later) | |
Ryanair has called on the Office of Fair Trading (OFT) to investigate price rises in aviation fuel at Belfast City and Glasgow Prestwick airports. | |
The budget airline wants a probe into Air BP's "unjustified attempts to impose monopoly increases of over 50%" on the delivery of fuel. | The budget airline wants a probe into Air BP's "unjustified attempts to impose monopoly increases of over 50%" on the delivery of fuel. |
Ryanair said Air BP, which has a "complete monopoly" on the fuel at the airports, has not explained the rise. | |
Air BP, which provides air services and fuels, said the prices were reasonable. | |
The firm said prices are agreed "by mutual negotiation", and must "reflect current market and cost environments". | |
It said it was "confident" that it had not breached any competition laws and was surprised by the carrier's decision to involve the OFT. | |
Meanwhile Ryanair said it has repeatedly written to the fuel provider asking for an explanation for "these rapacious increases" but claimed Air BP had "refused to provide any valid justification". | |
"Air BP has a complete monopoly on the supply of aviation fuel at these airports and is abusing this position to unilaterally impose over 50% cost increases (over 10 times the rate of inflation)," said Jim Callaghan, Ryanair's director of legal and regulatory affairs. | "Air BP has a complete monopoly on the supply of aviation fuel at these airports and is abusing this position to unilaterally impose over 50% cost increases (over 10 times the rate of inflation)," said Jim Callaghan, Ryanair's director of legal and regulatory affairs. |
"This abuse comes at a time when BP and the other oil majors are making billion pound profits at the expense of the aviation industry, which is currently in crisis," he added. | |
A number airlines have folded as they face the twin challenge of rising costs of fuel and lower consumer demand. | A number airlines have folded as they face the twin challenge of rising costs of fuel and lower consumer demand. |
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