BAR UK, the trade association that represents some 90 full service scheduled airlines doing business in the United Kingdom, today responded to the CAA proposals for pricing at the BAA London airports for the five-year period beginning April 2003.

Whilst welcoming the proposals to continue with the 'single till' and introducing a 'service quality term', BAR UK members are most concerned about the level of charges proposed for Heathrow airport.

Under the CAA proposals airlines are faced with an increase of 9% for the fiscal year beginning April 2003 followed by annual increases of RPI + 6.5% for each of the next four years. These increases are completely unacceptable and would be so even if they did not come at a time when many airlines are struggling to make ends meet.

The CAA are also proposing that the cost of capital be set at 7.75%. We think that this is too high and does not reflect the comparatively risk free environment that BAA operates within. It also amounts to pre-funding, to which we are opposed.

...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