Ryanair News

News Release

19.12.11

Ryanair Calls For Early Sale of Stansted as BAA's High Fees Fund £240M Dividend to Spanish Shareholders

   
WHILE BAA STANSTED’S TRAFFIC KEEPS FALLING FERROVIAL’S DIVIDENDS RISE
 
Ryanair, the world’s favourite airline, today (19th Dec) called for the early sale of London Stansted Airport, as recommended by the UK Competition Commission in 2008, after the BAA monopoly confirmed that its high airport charges will fund dividends of £240m next year to its Spanish shareholders, Ferrovial. Ryanair calls on the UK Government to intervene and procure the early sale of Stansted and one of the Scottish airports to allow competition between airports to deliver lower costs for airport users, where the BAA monopoly has repeatedly failed while delivering bigger dividends for its Spanish shareholders.
 
Over the past five years the BAA has doubled its charges to airlines at Stansted, and is generating excess profits, which it is now distributing to shareholders. However, during this five year period, traffic at Stansted has collapsed from over 24m in 2007 to just over 18m in 2011. Already this year, Ryanair, easyJet, Air Berlin, Thomas Cook, Thompson and Air Asia have announced further cuts in flights and traffic at Stansted in the face of continuing high costs and monopoly profiteering by the BAA Stansted monopoly. 
Ryanair’s Stephen McNamara said:
 
“Back in August 2008, the UK Competition Commission recommended the break-up of the BAA airport monopoly. The Competition Commission found that“the BAA’s monopoly ownership of Heathrow, Gatwick and Stansted airports had adversely affected competition”. It also found that “the way the BAA has conducted its business has adversely affected competition”.  It also concluded that “the inadequate regulatory regime operated by the CAA has adversely affected competition”.
 
It is regrettable that today, while it continues to overcharge passengers and airlines at its London airport the BAA has still failed to comply with the Competition Commission’s 2008 ruling to sell Stansted but is now further enriching its Spanish shareholders while it strangles London traffic, tourism and jobs. 
 
Ryanair believes that the BAA is an abusive airport monopoly, which has engaged in significant overcharging and monopoly profiteering at Stansted. It is now time for the Government to intervene to force the early sale of Stansted and one of the Scottish airports and allow competition to provide UK consumers with more choice, lower costs and a better experience at the London airports instead of allowing declining London passenger traffic to be fleeced by the BAA monopoly in order to reward its already rich Spanish shareholders.”
 

 


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