BA welcomes inquiry into airport charges

British Airways yesterday welcomed the outline direction of a Competition Commission inquiry into a proposed hike in charges to airlines using the London airports owned by BAA.

BA and other airlines had complained that the increase sought by BAA, which operates Heathrow, Gatwick and Stansted, would lead to higher fares and make Heathrow one of the most expensive airports in Europe. BA said the proposed increaseswould run 5 to 6 per cent a year above inflation.

The Competition Commission yesterday published its "issues" letter, a neutral document which sets out the lines of inquiry it will pursue. BA said it was encouraged by the issues raised in the letter.

BAA had argued that its plans to invest £8bn in the London airports over the next 11 years require the increased charges. The Commission will report back to the sector's regulator, the Civil Aviation Authority, and the new charges that the CAA will allow are expected to be announced at the end of this year. The new five-year pricing regime will come into force in April 2003.