Ryanair seeks probe on fuel cost

Posted by admin on 16 October, 2008 under Business news | Be the First to Comment

Ryanair is calling on the Office of Fair Trading (OFT) to investigate price rises in aviation fuel at Belfast City and Glasgow Prestwick airports.

The budget airline wants a probe into Air BP’s “unjustified attempts to impose monopoly increases of over 50%” on the delivery of fuel.

Ryanair says Air BP, which has a “complete monopoly” on the fuel at the airports, has not explained the rise.

Air BP, which provides air services and fuels, was not available for comment.

Ryanair says it has repeatedly written to the energy provider asking for an explanation for “these rapacious increases” but Air BP has “refused to provide any valid justification”.

“Air BP has a complete monopoly on the supply of aviation fuel at these airports and is abusing this position to unilaterally impose over 50% cost increases (over 10 times the rate of inflation),” said Jim Callaghan, Ryanair’s director of legal and regulatory affairs.

“This abuse comes at a time when BP and the other oil majors are making record billion pound profits at the expense of the aviation industry, which is currently in crisis,” he added.

A number airlines have folded as they face the twin challenge of rising costs of fuel and lower consumer demand.

News reported by The BBC