In the News - BAA price caps

BAA say price rises won't cover the rising cost of security

Price increases for airline passengers will not cover the increased cost in security BAA claimed today. The Civil Aviation Authority (CAA) has proposed to allow BAA to increase charges by 15.6 per cent in real terms, or £11.97 a passenger at Heathrow next year, followed by the rate of inflation plus 7.5 per cent for each year until 2012-13.

The CAA also announced plans to punish the group if security queues are more than five minutes for 95% of the time, with a maximum queuing time of 10 minutes at Heathrow and 15 minutes at Gatwick. The potential fines faced by BAA for under performing amount to some £75m, £60m at Heathrow and £15m at Gatwick.

This comes on the back of the Competition Commission report, as reported In the News on 4 October, which criticised BAA for its poor level of service and recommended its permitted profits be limited.

(Sources: The Times The Guardian )

Posted by Plebble Admin at 10:45 on 21-Nov-2007