Easyjet loses appeal on charges

Low-cost airline easyJet today lost the latest round of its legal battle over what it has described as an “exorbitant” increase in airport charges at Gatwick.

In June a judge in the High Court rejected the airline’s accusation that the price decision made last year by the Civil Aviation Authority (CAA) was unfair and unlawful

Today, three judges at the Court of Appeal in London dismissed easyJet’s challenge against that ruling.

The CAA, whose functions include the economic regulation of UK airports, is required to set a maximum airport charge – the price per passenger to be paid by airlines – at certain designated airports, including Gatwick, for five-year periods.

It was claimed by easyJet, a major user of Gatwick, that the way in which the CAA had allowed airport operator BAA to raise prices – from £5.61 (€6.26) to £6.79 (€7.58) last year – was flawed and there was a failure to follow the recommendations of the Competition Commission.

During the High Court hearing easyJet argued that the CAA’s price decision, reached on March 11 last year for the period 2008 to 2013, was “unlawful” and “unfair”.

Mr Justice Collins, sitting in London, rejected the accusations.

Dismissing easyJet’s appeal today, Lord Justice Dyson, sitting with Lord Justice Maurice Kay and Lord Justice Rimer, said: “Standing back from the considerable detail that this case has generated, I cannot accept that the airlines in general (or easyJet in particular) have been unfairly treated by the CAA.”

Airlines pay the airport charge for each flight of each passenger and the airport operator, BAA, receives it.

The CAA has argued that higher airport charges are paying for the modernisation of Gatwick, which will benefit passengers.