Stansted airport charges hiked by regulator

British regulator the Competition Commission yesterday said that airport charges at London airport Stansted should be hiked around 3.5 per cent in 2009/10 - despite the impact on the industry of the economic downturn.

In a move likely to enrage Stansted's airline users such as Ryanair, the CC ruled in favour of charge increases at the airport during each of the next five years.

Airlines are expected to pay Stansted operator BAA, owned by Spain's Ferrovial, 634 pence per passenger in 2008/09. The CC said this should now rise to 656 pence in 2009/10, and to a maximum of 705 pence by 2014.

BAA had asked for a higher sum, but the recommendations are still likely to increase calls by Ryanair for airports regulator the Civil Aviation Authority (CAA) to be overhauled and for BAA to be forced to sell Stansted.

"(A sale) will ensure that efficient facilities are built at Stansted which will meet the needs of airlines and consumers rather than inflate the costs and profits of the BAA monopoly," Ryanair chief executive officer Michael O'Leary said at the carrier's half-year results on Monday.

The CC repeated earlier findings that the running of Stansted as part of a London monopoly by BAA was against the public interest. It said the operator was guilty of running ineffective security queuing and not consulting properly over airport expansion.

The CC earlier this year said BAA should have to sell two of its three London airports and one in Scotland. BAA promptly put London's Gatwick up for sale.