Ryanair says CAA is 'running amok'

Ryanair is considering a legal challenge against the Civil Aviation Authority (CAA), accusing it of "running amok" with new regulations.

Europe's largest budget airline is incensed by last week's restructure of National Air Traffic Services (Nats) and the regulation of airports operator BAA. Jim Callaghan, Ryanair's head of regulatory affairs, said: "The CAA is running amok on Nats and on airports. We now have to consider a broader challenge against the CAA because it is not representing the interests of users or consumers. We would challenge the CAA over its ability to regulate."

Mr Callaghan said it was too early to say where a challenge would be made, but Ryanair is understood to be considering the European courts or a judicial review in the UK.

The rescue of Nats will allow the troubled public-private partnership to increase its charges on airlines. Similarly, under new regulations BAA will be allowed to increase its fees at its London and Manchester airports. Both proposals would hit Ryanair harder than most airlines because it operates on such slim margins.

In January Ryanair approached the Office of Fair Trading. But the OFT told the airline it was unable to challenge the CAA. "We seem to be the lone voice in the desert," said Mr Callaghan.