Press Release issued 20 November 2003

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No cross-subsidy at BAA's London airports

BAR UK, the trade association for scheduled airlines doing business in this country, has written to the Secretary of State for Transport expressing the concerns of its members on this topic. The letter also reconfirmed the BAR UK members' priorities for new runway capacity in the south east.

Top of the list is the need for a new short runway at London Heathrow, followed by a widely spaced second runway at Gatwick. More capacity may also be required at Stansted airport within the next 30 years.

Whilst new runway capacity at both Heathrow and Gatwick could be funded from the incomes generated at those airports, it is very doubtful the same could be said for Stansted. BAR UK members fear that were the Secretary of State to decide that priority be given to developing a new runway at Stansted in preference to or before Heathrow, then that could only be done by means of cross-subsidy. BAR UK members are clear that they do not wish to subsidise the construction of runways at Stansted by means of the profits earned by the BAA at London Heathrow.

BAR UK's Chairman, Mike Carter of Continental Airlines, said "If the government propose to develop new runway capacity at Stansted before Heathrow and Gatwick, and to have that expansion funded by the users of BAA's other two London airports, I expect BAR UK members to support a recourse to legal action."

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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


Previous Press Releases

10.09.03 "BAR UK Board elects new Vice Chairman and co-opts two new Directors"

30.06.03 "BAR UK responds to the Government's inclusion of Gatwick airport in the consultation on future development of air transport in south east England"

02.06.03 "BAR UK asks for BAA help to reduce costs"

15.05.03 "New Chairman for BAR UK"

27.03.03 "BAR UK seeks relief from price increases and taxation"

30.01.03 "Unacceptable price increases at London Heathrow"

10.01.03 "BAR UK's response to the CAA proposals for pricing at the BAA London airports"

28.11.02 "BAR UK's response to the government's consultation on the future development of air transport in the United Kingdom"

04.10.02 "BAR UK's General Meeting"

01.08.02 "BAR UK's initial response to the Government's proposals for enhancing capacity for the commercial aviation industry"

11.09.01 "New Chairman for BAR UK"

05.01.00 "Paul Ellis of British Airways co-opted to the Board of BAR UK Ltd."

01.09.98 "Yavuz Sökmen of Turkish Airlines takes over leadership of BAR UK"

08.07.98 "BAR UK Elects New Vice Chairman"

07.05.98 "BAR UK sets up Site on the Internet "

16.02.98 "United Airlines takes over leadership of BAR UK"

15.07.96 "Parliament passes Bill to curb crime in the air"

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