PPRuNe Forums - BAA: No LHR fee hike, no T5 [Irish Indo]

http://www.unison.ie/irish_independe...a=35&si=815089

Heathrow fees hike move slammed
Tuesday August 27th 2002

AER Lingus said yesterday that it would strongly oppose moves by the main British airports operator to increase landing fees at London's Heathrow airport.

A spokesperson for the state-owned carrier said that any increases would be extremely unwelcome at a time when airlines were trying to push costs down.

He said Aer Lingus, which has about 20 flights into Heathrow every day, would "very strongly resist" a hike in landing charges.

"We are against any increases because air fares are coming down at a rate of about 10pc a year. We now have 3m very low fares this year and we feel costs should be coming down, not suppliers' charges rising," he said.

Aer Lingus cut €190m from its bottom line in a major cost-cutting survival strategy earlier in the year and has been offering lower price seats to improve competitiveness.

Airport operator BAA has claimed that it will not build a new terminal at Heathrow if the British Civil Aviation Authority turns down its request to increase landing fees.

Chief executive Mike Hodgkinson told a British newspaper: "If we can't raise the money, we can't build the terminal."

The Civil Aviation Authority said it won't make a final decision on BAA's request until the end of January.

British Airways, Heathrow's biggest user, has already given BAA about £100m towards building the terminal, Andrew Cahn, the carrier's head of Government and International Affairs, said.

He said BAA should cut costs rather than charge airlines higher fees and said it was inconceivable that the terminal would not be built.