BAA sues Ryanair over refusal to pay higher charge

British airport operator BAA has started legal action against Irish airline Ryanair over its refusal to pay a 15 per cent increase in charges at Stansted airport, Ryanair said yesterday.

Ryanair said in April it would not pay the higher charges imposed by BAA, owned by Spanish firm Ferrovial.

"We are going to fight the action," a Ryanair spokesman said. "We don't think the fees are warranted."

A spokesman for BAA could not immediately comment.

A BAA spokesman told the Irish Independent newspaper that the airport charges remained within the limit allowed by the regulator, the Civil Aviation Authority.

"This matter is in the hands of the lawyers so it is inappropriate to make any comment at this stage," the paper quoted the spokesman as saying.

Ryanair, Europe's biggest low-cost carrier, said last month it would cut winter capacity at Stansted, its busiest hub, due to high fuel prices and because the cost of using Stansted was too high.

Rival low-cost airline easyJet also said in April it wanted to withhold part-payment of price rises by BAA at Gatwick airport.