March 2015 easyJet statement in response to the CAA`s

March 2015
easyJet statement in response to the CAA’s announcement on the
economic regulation of future runway capacity
“easyJet strongly opposes passengers being asked to pre-fund new
runway capacity. This is effectively a tax on passengers to support the
financing of a runway option. If pre-funding is necessary to finance
new capacity because the airport is unable to raise private finance to
support the project, this suggests that the project is unviable and
should not be built.
“easyJet is disappointed that the CAA has not closed off the prospect
of pre-funding by passengers and will continue to protect passengers’
interests by actively opposing such funding.
“Pre-funding by consumers does not occur in commercial markets and
is a product of airports having significant market power. Heathrow and
Gatwick are regulated monopoly utilities. easyJet believes they could
raise debt to fund capital expenditure when a clear regulated return will
be attached to this expenditure – as is the case with the funding needs
of other regulated industry projects.”