Gatwick Airport Blog

EasyJet loses Gatwick case

Fri, 10 Jul 2009 12:42:34 BST

EasyJet has failed in its court battle over the increasing of fees for airlines at Gatwick Airport. The budget airline had taken the CAA (Civil Aviation Authority) to the High Court over claims that the airport regulator’s recent agreement to raise the fees for using Gatwick was unlawful.

But the High Court has now thrown out the case, to the obvious pleasure of the CAA but to the dismay of EasyJet. Harry Bush from CAA said that he is “pleased with the outcome of the judicial review”, although EasyJet has been given the right to appeal.

EasyJet is frustrated that the High Court did not order a review of the fee hikes. The problem was all caused over the decision that the maximum fee per passenger using the airport was to be increased to £6.79. EasyJet has said that this will cost it an extra £46 million over the next five years, and it has also said that the charges are likely to be paid by passengers in the form of higher fares.

The CAA has claimed that the rises were necessary in order to make important improvements to Gatwick, but EasyJet has already announced that it will appeal the ruling. In a difficult time for the aviation industry, it said that “passengers must be protected with strong airport regulation.” And although it is great that the company is so concerned for the wellbeing of its customers, it is certain to be worried more about the hit that its profits will take if it becomes less competitive in an already competitive market.

BA switches flights from Gatwick to Heathrow

Fri, 03 Jul 2009 12:58:36 BST

British Airways has just announced that this winter it will be cutting back on the number of services that it currently offers from Gatwick Airport.

It is thought that the troubled airline, which has recently been hitting the headlines for asking staff to work for free, is finding itself under increasing pressure from the budget airlines when it comes to short-haul European flights.

Nine of its routes are going to be affected by the changes. There are five that will be switched to Heathrow Airport instead, and these are:

Madrid
Malaga
Barcelona
Gibraltar
Pisa

On top of this, a further four routes are to be scrapped altogether. These four are:

Krakow
Palma
Malta
Alicante

BA has said that the decision has been made and that the changes will all come into effect from October 25 this year. On top of these nine major changes, there are also a number of other changes that passengers should be aware of that will take place this winter.

The flight that BA currently operates from Gatwick to Varna in Bulgaria is going to be cancelled in the winter, with flights only operating in the summer months. And on top of this, it has also scrapped next summer’s flights from Gatwick to Ibiza.

It is likely that many passengers are going to be affected by these changes. However, BA has already announced that full refunds will be available to anyone who has already booked their flight. Alternatively, BA is also offering them the chance to switch flights instead.

On the plus side, it will be increasing some of its flights from Heathrow as a result, with flights to Prague and Barcelona both increasing in frequency.

British Airways asks staff to work for free

Fri, 26 Jun 2009 15:23:09 BST

If you were in any doubt about the dire situation of the UK’s airline industry, you only have to look to British Airways for proof. The flagship airline of the country has just asked its employees to work for free to help keep the company afloat.

The airline lost a staggering £400 million last year. To try to keep itself going, it has now asked 400,000 staff to work for free for up to a month.

The boss of the company, Willie Walsh, has indicated that he will practice what he preaches by sacrificing his pay for a month. This will set him back £61,000 and he will therefore be giving up the most in actual value. However, his £740,000 salary means that he can probably afford to go a month without pay and not feel the pinch, whereas asking the luggage handlers and cabin crew to take a one-month cut is a different matter.

The reason it is doing so badly is due to two main reasons, which are the same reasons that other airlines are having such a tough time: the huge drop in passengers due to the recession, and the rise in oil prices witnessed last year.

In the BA newsletter, Mr Walsh said that they “face a fight for survival” and that how they fare will rely on “everyone contributing to changes”.

Opinion is divided over whether it is a good thing or not. It would save people from becoming redundant in such difficult times, but at the same time, any pay cut these days is going to hit many workers hard.

Airlines concerned over Gatwick improvements

Mon, 15 Jun 2009 14:29:00 BST

There has been concern ahead of BAA’s £900 million investment project at Gatwick Airport, which has led the AOC (Airline Operators Committee) to issue a complaint to the company, claiming that there is a chance the huge bill will have to be passed onto their customers in the form of higher fares.

Ryanair, EasyJet and British Airways, all members of the AOC, have sent a letter to BAA expressing their concern that now is not the right time to go ahead with the large-scale changes, due to the fact that passenger numbers are continuing to fall. Gatwick has seen passenger numbers drop considerably this year, falling by 12% since the beginning of 2009.

The airlines are reluctant to pass on the bill to their customers during this difficult economic climate, and they have suggested that the programme be scaled back and put off until after the airport has been sold.

The airlines spoke of an “unproven” case for the millions that would need to be pumped into the airport for new facilities over the next five years. They have clearly expressed that they want to put off the changes until the new owner of the airport is decided, who they feel may have cheaper plans.

The proposed improvements to Gatwick include a new aircraft pier in the North Terminal, costing £200 million, and a number of other expensive upgrades. However, according to the AOC the costs cannot be justified.

BAA counteracted the criticisms by saying that the airlines were all involved in the negotiation process, and had been aware of the costs that it would incur for a long time already.

Only two Gatwick bids remain

Mon, 01 Jun 2009 16:08:56 BST

The ongoing bidding process for Gatwick airport has taken a new turn with the bid of the Citigroup consortium (named the Lysander Gatwick Investment Group) being rejected by BAA.

BAA has announced that the bid was too low, but the Lysander Gatwick Investment Group has said that the decision is “bizarre in the extreme” as well as “extraordinary and puzzling”. The group said that its bid was the only one to provide a long-term commitment to the airport and to be fully funded.

However, on the statement that the consortium released, which made its frustration so clear, the group also indicated that it was still keen on pursuing its bid for the airport.

The size of the bid was reported to be between £1.3 and £1.4 billion. However, the bid was deemed too low by BAA which wants at least £1.5 billion for the airport.

Only two bids now remain in the running for the airport: MAG (The Manchester Airport Group), consisting of the Greater Manchester Pension Fund and Borealis Infrastructure from Canada, and Global Infrastructure Partners (a joint venture between Credit Suisse Group and GE Infrastructure), which already owns London City Airport.

The Lysander group was thought by many to be the favourite, but now that it is out of the running MAG has taken the pole position and is now considered by some to be the favourite to take over Gatwick.

In separate news surrounding the bidding process, BAA has said that it is planning to appeal against the antitrust ruling which led to the decision to sell three of its airports in the first place. The move comes amid concerns by the company that the demand to divest its assets during a recession were not taken into account.

Air rage on the increase at Gatwick

Fri, 15 May 2009 15:46:47 BST

Gatwick airport has reported an increase in the number of air rage incidents which necessitated police action. Police had to board planes 58 times last year, up from 50 the year before, and when problems on the ground are taken into account it works out at around ten incidents per week in the first three months of the year.

Offences committed ranged from threatening and abusive behaviour to assault, and many were alcohol related. As a result, 52 people were arrested and a further 63 denied boarding. Nationwide the number of air rage incidents has increased fourfold in the last four years, although the number of serious incidents has actually decreased.

Police at Gatwick have enlisted the help of businesses at the airport, particularly those selling alcohol, and many promotions have been withdrawn in an attempt to ensure that passengers are not intoxicated before they even get on the plane.

Stress is cited as a major contributory factor: intrusive security procedures, flight delays, lack of legroom, and screaming children can make the most even tempered passenger fly off the handle.

BAA, the operator at Gatwick airport, was keen to play down the statistics, saying that 35 million passengers pass through the airport each year, and that only a very small number of passengers cause problems. It is also thought that as airlines become increasingly intolerant of disruptive passengers more cases are being reported to the police.

This March a passenger was jailed for eight months after a drunken air rage incident on a plane flying from Egypt to Cardiff.