Investment Project for Gatwick Airport Put on Hold

Posted on 07. Dec, 2011 by in News

The Airline Operators Committee raised their concerns over BAA’s allocated budget of £900 million for an investment project at Gatwick Airport. They defended their issuance of the complaint by saying that there is a possibility of asking increased rates from their customers, meaning higher fares for getting on board.

The three leading airlines at Gatwick Airport – Ryanair, EasyJet and British Airways has expressed their apprehension on BAA’s move further explaining that it is not the ideal time to push through with big changes since there is a recorded downfall in the number of customers. Gatwick has been experiencing a 12% cut back on the number of passengers since the beginning of 2009.

The airlines are hesitant to increase the charges from their passengers as they are well aware of the recession that everyone is affected by. They however suggested that the plans need not be cancelled but postponed until the airport has already been sold to gather enough finances.

The airlines shared their sentiments that the changes need not be done immediately. They are not taking for granted the idea of further improvements for the hub. They believed that big changes need only be done after the new owner is determined. They anticipate that the new owners may have other plans for the airport and it will probably be at a cheaper budget.

The budget was intended for improvements such as acquiring a new aircraft pier in the North Terminal which will cost them at £200 million and other expensive upgrades. However, the AOC believes that the costs aren’t reasonable.

BAA had to face the issues and has involved the other airlines stating that the negotiations were transparent and that they were aware all along of the costs for the upgrade.

 

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