Ryanair calls for fuel price 'monopoly' investigation
16.10.08
Ryanair has asked the Office of Fair Trading (OFT) to investigate price rises in aviation fuel at Belfast City and Prestwick Airport. It wants a probe into Air BP's ‘unjustified attempts to impose monopoly increases of over 50%’ on fuel.
The budget airline said Air BP, which has a ‘complete monopoly’ at the airports, has not explained the rise. A spokesman said Ryanair has repeatedly written to the fuel provider asking for an explanation for ‘these rapacious increases’ but Air BP has ‘refused to provide any valid justification’.
Jim Callaghan, Ryanair's director of legal and regulatory affairs, said: ‘Air BP is abusing its position to unilaterally impose over 50% cost increases (over 10 times the rate of inflation). This abuse comes at a time when BP and the other oil companies are making billion pound profits at the expense of the aviation industry, which is currently in crisis.'
Air BP, which provides air services and fuels, said the prices were reasonable. A spokesman said prices are agreed ‘by mutual negotiation’, and must ‘reflect current market and cost environments’. It said it was ‘confident’ that it had not breached any competition laws and was surprised by Ryanair's decision to involve the OFT.
The fuel supplier said the increases were a result of rising oil costs and a downturn in business - despite latest figures showing Belfast City to be Britain's fastest growing airport. Mr Callaghan said Belfast City Airport had made it known that if Air BP and Ryanair are unable to agree on pricing, then they will be looking at introducing alternative suppliers.
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