Flybe disappointed by Ferrovial profits

Flybe has expressed disgust at Ferrovial’s latest profit announcement where the Spanish-owned airport operator predicted a doubling of profits from £1.066 billion in 2008 to a £2.053 billion by 2012.The announcement, made to analysts in the City of London on May 13th, comes hot on the heels of the recent CAA approval of a 21.3% increase in landing charges for London Gatwick and a similar hike for London Heathrow.

Flybe have today written to Transport Secretary Ruth Kelly, calling on her to take immediate action and break up BAA - a move recommended only last month by the Competition Commission.

Mike Rutter, Chief Commercial Officer, Flybe, comments: “The release of these figures is yet more proof of the monopolistic nature of BAA. While airlines are wrestling with the challenge of fuel prices, Ferrovial seem intent only on milking passengers and airlines of every last hard-earned penny. We’re not against companies making a profit but a projected rise in earnings over four years of 92.5% is frankly obscene”.

“The CAA got it badly wrong when they approved the 21.3% increase in landing charges for London Gatwick and as the airlines predicted at the time, Ferrovial are cashing in. We call upon the Transport Secretary to review this decision urgently”

He continued: “At the risk of sounding like a broken record, Flybe is once again calling on Ruth Kelly to show some leadership and urgently review the position of the CAA in regulating aviation, overturn the landing charges hike and break up BAA.  I’m no politician but I can guarantee it would be a move welcomed right across the country. Over the last year, Flybe have flown more than 75,000 flights from BAA/Ferrovial owned airports, so we will back her 100% if she takes decisive action”.