Two can play at this game

22 July 2004 By Fiona Maharg-Bravo

Even if Ryanair loses its case it is fighting against the airport operator, the cost will be small. What s more, there is an incentive for both sides to kiss and make up rather than slug it out.

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Ryanair said it has filed a breach of contract and other proceedings against UK airports operator BAA. The lowcost airline says BAA has abused its monopoly position in the London area by charging high fuel levies. Ryanair is refusing to pay passenger charges at Stansted, which came into effect on 1 April, until the levy is reduced.

Meanwhile, BAA has issued a writ against Ryanair for failure to pay the increase in the passenger charge, which mounts to £1m since April. It will now begin charging Ryanair the full £4.89 passenger charge. Last year Ryanair paid an average of £2.89 per passenger. The discount was due to unwind gradually through to March 2007, when all airlines at Stansted will have to pay the full passenger charge.

Ryanair also announced expansion plans at Luton, another London airport. It is launching nine new routes and purchasing four new aircraft for $240m.

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