British Airways flies into rage over air fares

THE UK's biggest airline today reacted with fury to a new price regime that will drive up fares at Britain's two busiest airports.

The Civil Aviation Authority (CAA) announced that airport operator BAA can substantially increase the landing fees it charges airlines at Heathrow and Gatwick over the next five years.

The settlement is bound to lead to airlines passing some of the increase on to passengers in terms of increased ticket prices.

British Airways said the CAA's decision "to allow BAA to ramp up airport charges significantly demonstrates conclusively that the airport regulation system has failed".

Paul Ellis, BA's airport policy and infrastructure general manager, added: "When BAA's new owners, Ferrovial, bought them, the CAA said they would not be influenced by Ferrovial's high debt levels.

"In practice, they have ignored their own policy and caved in to intense pressure from BAA by setting excessive price increases."