"Ryanair chief attacks BAA as 'overcharging rapists'"

Friday, July 23, 2004

Ryanair chief attacks BAA as 'overcharging rapists'
By Katherine Griffiths
United Kingdom - The Independent


In the competitive world of budget air travel, cut-throat behaviour is
not uncommon. But yesterday, Michael O'Leary, the outspoken chief
executive of Ryanair, took the battle to another level, accusing the
company that runs Stansted airport of being "a bunch of overcharging
rapists".

The boss of Europe's largest low-cost flight operator added that BAA,
which also runs Heathrow and Gatwick airports, was "scamming" the
airlines using Stansted by overcharging them on fuel costs. 

Mr O'Leary also accused BAA of abusing its allegedly monopolistic
position by wasting hundreds of millions of pounds on "Taj Mahal
palaces" and "Noddy trains" to upgrade its airports. 

The stream of vitriol from Mr O'Leary came after the dispute over
airport charges between Ryanair and BAA ­ Britain's largest airports
operator finally exploded into a full-blown legal war. 

Yesterday both sides followed through on threats voiced on Wednesday
evening to take their disagreement to court. Ryanair issued a claim in
the High Court accusing BAA of "abusing its dominant position" at
Stansted and of breaching its contract with the Irish airline operator. 

BAA countered with its own claim, demanding £1m in fees it says Ryanair
has refused to pay for its 12.5 million passengers who use the Irish
operator to fly to and from Stansted each year. 

If the case goes to court, in six to 12 months' time, it could cost tens
of millions of pounds in legal fees. Yet, if both sides are to be
believed, neither is planning to blink first. Mr O'Leary made it clear
he was already relishing his day in court. 

"Let the f***ing games commence. They are creaming it in left, right and
centre at Stansted. I don't care if they are making monopolistic profit
as long as they abide by their legal agreements," he said. 

BAA said it was reluctant to sue one of its most important customers,
but had no choice because Ryanair was refusing to hand over the full
amount of landing charges BAA demands for each customer using the
airport. 

At the heart of the current dispute are the fuel charges BAA imposes on
airlines flying in and out of Stansted. The operator, which is regulated
by the Civil Aviation Authority, is allowed to recoup over 25 years the
cost of building a state-of-the-art underground refuelling system, which
means that the airport is not clogged up with lorries constantly having
to drive around refuelling aircraft. 

According to Ryanair, not only is BAA on course to recoup the £12.5m it
spent on the system, but it is making a profit on the side, because the
charge is levied per customer, and Stansted is seeing far more
passengers than previously forecast. 

BAA denies recouping more than the 8 per cent it is allowed under CAA
rules and pledged to redistribute any excess. 

The row could prove to be a mere sideshow to another dispute between
Ryanair and BAA, which must renegotiate the range of fees the airline
pays to use its airport by 2007. That, Mr O'Leary said, would be "the
mother and father of all wars". 

Possibly as an opening salvo in that battle, Mr O'Leary said he could
take his business elsewhere, announcing Ryanair would beef up its
flights going out of Luton, adding nine new European routes to the
airport, which is run by BAA's rival TBI.


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