BAA Plc

📖 The Scoop

Heathrow, Gatwick and Stansted airports are all subsidiaries of British Airports Authority plc (BAA). The Commission's report investigates the level of airport charges per passenger set for airlines operating from these three airports for the next five years beginning April 2003, as well examining a number of public interest issues. Currently, the current system of airport charges is based on the 'single till' approach by which the significant profits from commercial activities of the airports (primarily the rental income from retail, catering and other concessions) are used to offset the level of aeronautical charges (operational costs). However, the Civil Aviation Authority has proposed that a 'dual till' approach should be used which would exclude commercial activities. The Commission notes concerns that this would lead to an increase in charges to airlines which would eventually be passed onto the passenger. It finds the overall disadvantages of this proposal outweighs any benefits and recommends the 'single-till' approach be retained. Other recommendations include that Heathrow and Gatwick airports should be required to pay specific rebates to airlines whenever service quality falls below agreed performance standards.

Genre: Business & Economics / Management (fancy, right?)