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European Airlines

 
   
easyJet withholds BAA price hike payment  
European Airlines  
   

On 15th April, easyJet, the low-cost carrier announced that it has decided to withhold part of passenger charges payments that it owes to BAA, the operator of Gatwick Airport. The said decision of easyJet was conveyed to Colin Matthews, the new chief executive of BAA through a letter. The decision of easyJet follows the strict objection expressed by easyJet towards the 21 percent increase in passenger charges announced by BAA. Notably, this rise in charges came into effect on 1st April. 

Awaiting the outcome of a judicial review, the said payments in full measures will be withheld in a separate bank account. If easyJet should fail in the legal challenge, then the airline will arrange to pay the amount accrued till then in addition to the interest accumulated. If the judicial review turns favorable to the interests of passengers and easyJet, then easyJet will arrange to return the money to its customers. To agree on the principles of this proposal, easyJet has given time to BAA until tomorrow.

Andy Harrison, the Chief executive of easyJet remarked, "We are determined to address a regulatory decision which we consider to be unlawful and damaging for the airlines, our passengers and the industry as a whole. If we cannot reach agreement, easyJet will need to consider what arrangements it may be able to put in place without BAA's consent. If we agree on those principles, there will be some legal paperwork to set in place, so this letter is formally subject to contract."