Ryanair anticipates losing fee battle

Ryanair’s CEO, Michael O’Leary, said this week he “fully expects” that the carrier will lose its legal battle with BAA over withholding the increased amount of fees charged by the airports operator for landing at Stansted.

BAA, which not only owns Stansted Airport, but also Gatwick, Heathrow, and several other, initiated legal action against the Dublin-based no-frills airline in July to force the airline into paying the increased rates.

In April, when the 15 per cent fee increase became effective, Ryanair alerted that it would not pay the higher fee.

O’Leary said this week that the amount of total fees withheld will be placed in an escrow account for payment to BAA when the judgement is handed down, anticipating that the legal judgement will be against his company.

The carrier’s CEO commented: “This was the only way we could expose BAA.”

The Ryanair exec has been mounting attacks on both BAA and the Civil Aviation Authority, which oversees airport operations, for some time.

The CAA governs BAA’s fee structure, and sets a cap on how much can be charged to airlines at all airports in the UK. A review of the fees charged is conducted every five years, and currently BAA maintains that the fees it charges are below the cap set by the CAA.

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