::::Jim Mason::::
2006-06-30 21:26:16 UTC
easyJet gives thumbs-up to OFT investigation
easyJet Press Release 30/06/06
Posted with express permission of the easyJet Press Office.
30/06/06
"Great news - but why did it take so long?" That is easyJet's response
to today's news that the Office of Fair Trading is to begin an
investigation into the UK's airports market.
The UK was one of the first countries in Europe to recognise the
consumer benefits of freeing airports from government control and
establishing a competitive framework in which they operate. While this
has given UK airlines and consumers some great airports - there are too
many cases where the ownership or regulatory structures act against
consumers. The OFT investigation is long overdue.
easyJet serves 12 UK airports, carries more passengers within Europe
than any other UK airline and uses 6 out of the 7 BAA airports in the
UK. In this industry-leading position the airline looks forward to
playing a pivotal role in the OFT's market study.
The OFT has a number of major issues to consider:
* Does the BAA's ownership of over 90% of the London airport
capacity act in the public interest?
* Does the BAA's ownership of Glasgow, Edinburgh and Aberdeen act
in the public interest?
* What lessons can be learnt from the competition that exists
between closely-located airports such as Liverpool and Manchester; or
Nottingham East Midlands and Birmingham; or Teesside and Newcastle?
* Is BAA's application of unitary pricing between different
terminals at Gatwick and Heathrow compatible with European law? For
example, easyJet's facilities at Gatwick's South Terminal are markedly
inferior to those that BA enjoys at the North Terminal - yet BAA charges
exactly the same on a per-passenger basis.
* Does the current regulatory regime, which guarantees a 7.75%
return for BAA on all capital expenditure lead to the
over-specification, or "gold-plating", of airport facilities?
The OFT will have its work cut out but this investigation is welcomed
and easyJet looks forward to this long-anticipated opportunity to ensure
that the UK's airports give better value to the travelling public.
- ENDS -
For more information contact the easyJet press office:
Tel: 01582
easyJet Press Release 30/06/06
Posted with express permission of the easyJet Press Office.
30/06/06
"Great news - but why did it take so long?" That is easyJet's response
to today's news that the Office of Fair Trading is to begin an
investigation into the UK's airports market.
The UK was one of the first countries in Europe to recognise the
consumer benefits of freeing airports from government control and
establishing a competitive framework in which they operate. While this
has given UK airlines and consumers some great airports - there are too
many cases where the ownership or regulatory structures act against
consumers. The OFT investigation is long overdue.
easyJet serves 12 UK airports, carries more passengers within Europe
than any other UK airline and uses 6 out of the 7 BAA airports in the
UK. In this industry-leading position the airline looks forward to
playing a pivotal role in the OFT's market study.
The OFT has a number of major issues to consider:
* Does the BAA's ownership of over 90% of the London airport
capacity act in the public interest?
* Does the BAA's ownership of Glasgow, Edinburgh and Aberdeen act
in the public interest?
* What lessons can be learnt from the competition that exists
between closely-located airports such as Liverpool and Manchester; or
Nottingham East Midlands and Birmingham; or Teesside and Newcastle?
* Is BAA's application of unitary pricing between different
terminals at Gatwick and Heathrow compatible with European law? For
example, easyJet's facilities at Gatwick's South Terminal are markedly
inferior to those that BA enjoys at the North Terminal - yet BAA charges
exactly the same on a per-passenger basis.
* Does the current regulatory regime, which guarantees a 7.75%
return for BAA on all capital expenditure lead to the
over-specification, or "gold-plating", of airport facilities?
The OFT will have its work cut out but this investigation is welcomed
and easyJet looks forward to this long-anticipated opportunity to ensure
that the UK's airports give better value to the travelling public.
- ENDS -
For more information contact the easyJet press office:
Tel: 01582
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