BAA accused of restrictive fee charging
fox1
IAIN DEY DEPUTY BUSINESS EDITOR
BMI baby, the budget airline, sparked yet another row over landing charges at Scottish airports yesterday, after revealing plans
to transfer one of its services from Glasgow to Prestwick airport.
The airline’s managing director, Tony Davis, claimed that BAA, which operates Glasgow, Edinburgh and Aberdeen airports, is
stifling the development of air services to Scotland by pricing itself out of the market. BMI baby’s twice daily Glasgow to
Cardiff service will be switched to Prestwick next Monday, with the Ayrshire airport likely to pick up further routes from the
fledgling airline over the next few months.
But BAA insisted its landing charges are set at a "reasonable rate" and have already been lowered by 25 per cent "in real terms"
over the past decade.
Davis said: "To be frank, Scotland has not had its fair share of low cost services to date, which is largely to do with the
charging structures at the two main airports. As a low-fares operator, we need the cost structure to support that. I can’t go into
the full commercial details, but it has proved considerably better for us to move this service to Prestwick."
He added: "Airports all over Europe are chasing low-cost carriers at present as they recognise that this is where the growth will
come from. BAA does not seem to be taking into account the additional revenues that can be generated from the high volumes of
passengers created by low cost carriers - through the retail offerings, car parking etc. It seems to be trying to raise all its
money through charges."
The criticisms echo similar comments in the past from Ryanair, Go-fly and EasyJet - which blamed high operating costs for its
recent decision to halve the number of daily flights it operates between Glasgow and Amsterdam.
The launch of the new service at Prestwick is being backed up with the offer of free rail travel from all over Scotland to the
airport for the first six months, followed by a 50 per cent discount on rail fares to the airport thereafter. BMI baby will
continue to operate two daily services from Glasgow to East Midlands airports, but Davis warned these flights may also be switched
to Prestwick if the Cardiff service proves successful.
A spokesman for BAA said: "Obviously, we will be talking to the airline to try to resolve whatever they feel the issues are, and
we will be attempting to hold on to the East Midlands service. We are disappointed by their decision, but it doesn’t come as a
great surprise given the disappointing passenger numbers we believe they have been experiencing on the route."
He added: "Glasgow airport’s charges have not gone up. Glasgow airport’s landing charges are set at a reasonable level, which
reflects the investment which has been made in the airport over the past ten years and the investment which will need to be made
over the years to come in order to develop Scotland’s air links."
BAA has invested £500 million in improving the infrastructure over the past ten years. It has also committed to spending a further
£500m over the next ten years.
Prestwick airport’s managing director, Tom Wilson, said: "Now that BMI baby has made a move into Prestwick, I’m confident we will
be able to persuade them to move the East Midlands service here too - and quite possibly further services, which could see them
develop a hub at Prestwick with aircraft based here."