BAR UK, the trade association for full service scheduled airlines in the UK, has again approached BAA for help in reducing its members costs.

Hostilities in Iraq made a bad business situation worse but the onset of SARS has had a devastating effect on the numbers of passengers travelling. The airlines have responded by cutting their costs where possible in an effort to deal with the downturn in their income. However, airport charges are not theirs to control, hence the appeal to the BAA.

At the end of March BAR UK wrote to the Chancellor of the Exchequer and BAA on the subject of costs. The Chancellor did not agree to suspend Air Passenger Duty (APD) but at least he did not increase the level of that particular tax in his April budget statement. BAA on the other hand, increased their charges from the beginning of April. At London Heathrow the increase is particularly severe- plus 9% on the previous level .

Tomorrow BAA will declare yet another set of successful financial results. Analysts expect pre-tax profits to again exceed £500 million. Contrast this with the current results from airlines. BAA claims that the capital expenditure programme, of which the new terminal at Heathrow forms a major part, is totally dependent upon the higher cash flow from Heathrow landing charges. BAR UK takes the view that BAA could, if it so wished, give some relief to airlines without damaging its ability to finance the capital programme in the long term.

Other airports have responded to the airline industry crisis by reducing their charges in order to help their hard-pressed customers. Help has not only come from Bangkok, Singapore, Kuala Lumpur and Taipei but also Brisbane and Melbourne. Nearer to home Dubai, Cyprus, Athens, Zurich and Copenhagen airports have all responded positively to industry requests for help. BAR UK members hope that BAA will reconsider its position and extend a helping hand at a time of real trouble.

...ENDS

For further information contact:
Peter North,
Chief Executive,
BAR UK

Tel:	020 7393 1261
Fax:	020 7393 1206
Email:	peter.north@bar-uk.org