Talks between easyJet and London Luton Airport to agree a new pricing structure at the airport have collapsed.
The two parties have been discussing a new financial arrangement for over two years, since the airport began building a new terminal. Talks finally broke down once it became clear that the final proposals from the airport were unacceptable to easyJet.
easyJet is now considering recourse to the UK Civil Aviation Authority to regulate the charging structure of Luton Airport to ensure that the airlines and their passengers are not being over-charged. The three other principal London airports - Heathrow, Gatwick and Stansted - have to adhere to a pricing formula agreed with the CAA. With no other airport to move to within the London area Luton airport is effectively a monopoly.
Stelios Haji-Ioannou, the easyJet chairman, said:
“There is only one thing worse than a government monopoly - that is a private monopoly. All monopolies like Railtrack or the water companies must be regulated. easyJet has been a victim of its own success. Our success in bringing passengers to the airport has resulted in the airport building new facilities and expecting our passengers to pay through the nose for the privilege of using them. The new facilities are oversized and the airport is trying to get easyJet passengers to pay for their mistake in building this white elephant.”