EasyJet wins review of Gatwick airport charges -FT

Nov 18, 2008
LONDON, Nov 17 (Reuters) - The High Court has approved an application from British low-cost carrier easyJet Plc (EZJ.L: Quote, Profile, Research, Stock Buzz) for judicial review of the regulatory process that led to higher airport charges at London Gatwick airport last spring, The Financial Times newspaper reported on Monday.

Britain's Civil Aviation Authority is allowing airport operator BAA to raise passenger charges at Gatwick, which is up for sale, by almost 50 percent to 8.36 pounds ($12.38) during a five-year period which began earlier this year.

CAA said the airport's owner would need the extra cash to improve security and reduce queueing at the airports.

BAA, which also has London Heathrow and London Stansted among its portfolio of seven British airports, is owned by Spanish construction-to-services company Ferrovial (FER.MC: Quote, Profile, Research, Stock Buzz).

In September, Britain's Competition Commission made a provisional ruling that three of the airports must be sold.

On Friday, easyJet founder Stelios Haji-Ioannou raised his stake in the company to 26.9 percent and asked the board to adopt a more cautious business strategy, including reduced orders for new planes. (Reporting by Dan Lalor)

Source: Reuters