News: Heathrow operator slammed by Competition Commission
Flights > News > # 1501 (03/10/2007)
The operator of Britain’s two largest airports has been strongly criticised by the Competition Commission for overcharging airlines and failing to deliver acceptable levels of passenger service at Heathrow and Gatwick.
The regulator said that BAA’s high charges are not justified due to the poor service it offered.
BAA was also accused of failing to manage security queues adequately. The Commission said that the airport operator had acted against the public interest in failing to manage security at Heathrow and Gatwick, resulting in “unacceptable” delays to passengers. The damning report said there had been no improvement in performance in the past five years.
In its report published today (October 3), the Competition Commission stated: "In our 2002 report we found that Heathrow and Gatwick had pursued a course of conduct contrary to the public interest by failing to make prices paid sufficiently reflect the level of service provided.
"We consider that Heathrow and Gatwick have displayed the same failings in the last five years.
"In particular they have failed to manage security queueing and queue times to avoid unacceptable delays to passengers and flights and consequently have not furthered the reasonable interests of the users of Heathrow and Gatwick."
The regulator recommended that the amount that BAA charges airlines per passenger be capped at £10.96 for Heathrow and at £5.48 for Gatwick in 2008-09, rising from £9.26 for Heathrow and £4.91 for Gatwick in 2007-08. The commission proposed that charges at Gatwick should fall in real terms over the next five years. Charges will increase by no more than 7.5 per cent above inflation for each of the next five years at Heathrow, while at Gatwick prices must rise by 0.5 per cent below the rate of inflation.
BAA criticised the commission's proposals. Stephen Nelson, chief executive officer of BAA, said: "We see little in the competition commission's report which delivers the incentives to transform the airports. Nor do we believe that the CC recognises the scale and nature of the challenges we face in seeking to deliver a step change in the passenger experience. At a time of increased complexity and risk in the UK airports sector, the CC is proposing at Heathrow - a dramatic reduction in returns."
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