Airlines respond to Gatwick sale

Ryanair yesterday presented its case to the panel investigating BAA’s appeal against the Competition Commission’s ruling that the airport operator must sell Gatwick, Stansted and either Edinburgh or Glasgow.

The airline’s chief executive, Michael O’Leary, said: ‘It is vital for the future of Britain’s air transport and tourism industries that the high cost, inefficient BAA monopoly be broken up as recommended by the Competition Commission report.

‘The Competition Commission’s extensive investigation has revealed that the airport monopoly has been bad for competition and bad for consumers.’

O’Leary said this was why Ryanair and ‘all other airlines at Stansted’ were strongly campaigning for the break-up of BAA, to ensure passengers interests were protected from ‘the damage inflicted by years of the high cost BAA monopoly’.

Elsewhere Flybe, Gatwick’s third biggest slot-holder behind easyJet and British Airways, gave a ‘cautious’ welcome to the airport’s sale.

Flybe chief commercial officer, Mike Rutter, said: ‘We carry more domestic passengers from Gatwick than any other airline and as such can speak with some knowledge on the crucial role the airport plays in connecting the UK regions to the capital.

‘Over the years, the airport’s mission has changed and this sale represents a real opportunity for the new owners to strengthen Gatwick’s position as the champion of short-haul and European flying.

‘GIP would be making a fatal mistake if they try and chase trophy airlines promising glamorous long-haul destinations.

‘That’s not the future – Gatwick’s  growth lies with efficient, environmentally sensitive, well-managed and stable airlines like Flybe.

‘Everyone knows that BAA’s charges were some of the most expensive in the industry and Flybe looks forward to Gatwick shedding that reputation and engaging early with its major customers to create a sustainable, economically realistic future.’

BAA is selling Gatwick to Global Infrastructure Partners (GIP) for £1.455bn in cash, with a further £55m payable subject to the airport attaining certain operating and financial targets.

Michael McGhee, the GIP partner leading the acquisition, said: ‘We will upgrade and modernise Gatwick Airport to transform the experience for both business and leisure passengers.

‘We plan to work closely with the airlines to improve performance, as we have done successfully at London City Airport.’