Mike Clasper, BAA's Chief Executive, was the guest speaker at BAR UK's October General Meeting today.

The directors and general managers of the international scheduled airlines doing business in the UK, who are the delegates to BAR UK's meetings, left Mr Clasper in no doubt as to how they feel about BAA's price hikes at Heathrow.

"At a time when the scheduled airline industry is attempting to recover from the disastrous effects of September 2001, the war in Iraq and SARS - price rises of 9% are something we can ill afford," said BAR UK's Chairman, Mike Carter (Continental Airlines). "BAA plc have enjoyed regular profitability for years and are seen as a sound investment. They seem to be immune to the cycles that affect airlines. It is particularly disappointing to our members that BAA have increased their prices at Heathrow so far ahead of any improvement in facilities. The first phase of Terminal 5 will not be opened until 2008 and the majority of BAR UK members are waiting to learn what plans BAA have for improving the existing terminals."

BAR UK members were very concerned by the decision of the CAA Economic Director to allow the monopoly operator to raise prices far in excess of the rate of inflation for the next five years. This decision was made earlier in the year and was the outcome of the quinquennial review of the regulated airports in this country by the CAA. The total price rises at Heathrow will be in excess of 40% over and above the actual rate of inflation. Apparently the CAA is more concerned for the shareholders of BAA than for the airlines who are struggling to survive.

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For further information contact:
Peter North
Chief Executive
BAR UK

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