BAA accused

LUTON airport is accusing BAA, the airport management group, of using its market position to squeeze out competitors. It said BAA was overcharging customers at Heathrow and Gatwick and cross-subsidising its loss-making airport at Stansted. Stansted's charges were thus well below the level required to cover costs. The effect was to threaten the privately funded development plans at Luton.

Luton is demanding that the CAA, the airline authority, force BAA into a 'fair' charging structure. If that does not work, Luton will ask for a reference to the Monopolies and Mergers Commission.