Ryanair boss Michael O'Leary has instructed his lawyers to file a complaint with the CAA and Competition Commission, demanding they revise the current price cap at Stansted.
Ryanair believes Stansted's airlines have executed a 'monopoly of abuse and overcharging' over the past five years, including: airport charges doubling from €3.3- to €6.60 per pax; and costs rising 16% from £155m to £180m, despite traffic falling 24% from 24m to 18.3m (2007-2010).
According to Travel Mole, Michael said: 'Stansted's regulatory accounts, in our opinion, clearly show the BAA gaming the regulatory system, and abusing its monopoly power to inflate its RAB and inflate its costs in order to overcharge airlines and passengers at Stansted. BAA Stansted has inflated their regulatory asset base by over £270m in inflation adjustments, and by £200m in second runway costs, for which there is no justification.
'BAA Stansted's regulatory accounts also show a myriad of unexplained intra-group costs, reallocation of Heathrow costs and an 80% increase in Stansted's electricity bill in 2010, due to a "revised allocation" of Heathrow's electricity costs in a blatant attempt to understate the enormous profits being exploited by BAA Stansted monopoly.
'Competition can provide Stansted's airlines and passengers with better service, at a fair price, whereas in recent years we have suffered atrocious service at rapacious prices, because in our opinion the BAA is an abusive monopoly and the CAA has been an incompetent regulator.'
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