Manchester airport to set fees for airlines
Manchester airport will be able to set the fees it charges airlines from April 2009, but the fees charged by Stansted will continue to be capped to protect airline passengers.
Transport Secretary, Ruth Kelly, has made the decision in order to prevent airports that have a near monopoly in their area from overcharging airlines, which then pass on fees to passengers.
“In making my decision on Stansted I have taken into consideration the fact that the airports in the south-east are now operating at almost full capacity,” says Kelly.
“This is bad for passengers in terms of delays, congestion and lack of choice and it is also bad for the UK’s productivity and growth. This is why the government supports a second runway at Stansted and is currently consulting on adding capacity at Heathrow,” Kelly adds.
The Civil Aviation Authority (CAA) will continue to set price caps at Stansted until new capacity is added or more evidence emerges from the ongoing Competition Commission review.
The decision on Stansted has been welcomed by easyJet, which gave evidence to the government “that Stansted, like the other major London airports, is a near monopoly and price controls must be retained to safeguard passengers from BAA’s market power”. In its evidence, easyJet also argued that East Midlands airport is not an alternative to Stansted.
The de-regulation of Manchester airport reflects the competition from other airports nearby. “I have taken into consideration the fact that other local airports, such as Liverpool airport, offer real choice for passengers,” says Kelly.
“The decision to de-designate Manchester will enable the airport to grow and develop without the costs of excessive regulation falling to passengers in the future,” Kelly concludes.
Written by: Nick Purdom
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