Cheap Flight News Europe

The United Kingdom's Office of Fair Trading (OFT) is to investigate the BAA the operator of London Heathrow, London Gatwick, London Stansted, Edinburgh, Glasgow and Aberdeen. They will look at what the effect on prices is of BAA having 90% of the London Airport capacity using as a comparison other adjacent but competing airports such as Liverpool, Manchester and Leeds Bradford. They will also look at how capital expenditure at BAA airports is effectively rewarded with a 7.5% return on capital, thus incentivising the operator to push up the capital costs as much as possible.
Naturally both Ryanair and easyJet are delighted that the OFT is to take up the case. Ferrovial the new owners of BAA are not likely to be so pleased.