BAA raises airport landing costs and ticket prices to rise soon

The Civil Aviation Authority (CAA) has allowed BAA to increase prices by up to 23.5% in 2008-2009.

Airlines such as British Airways have criticised the announcement as passengers will now pay increased costs to fly from any BAA airport.

BAA's owner, Ferrovial, is said to be heavily in debt after buying BAA and the increase in landing costs is said by several parties to help them be able to repay the large loans and interest charges.

BAA said in response that the rebuilding of Heathrow, and old facilities at Gatwick will still now be covered by the increased costs. The 9/11 attacks has left airports needing to increase their security requirements - and having to bare the cost themselves.

Its expected that ticket prices will increase by £2 per person once the increase gets enforced by BAA. For long haul flights, the £2 is trivial. For cheaper or budget airlines such as easyJet with a large base at Gatwick, a £2 increase could mean as such as a 15% increase in ticket prices.

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