The government last night backed Luton airport in its battle with self-styled consumer champion EasyJet after the airline had argued it would be unfairly penalised by high landing and take-off charges.
Chris Mullin, air minister, ruled that he could not impose a cap on charges for airlines using the airport. The ruling effectively meansthe government does not think the low- cost airline, owned by entrepreneur Stelios Haji-Ioannou, has a case against the airport.
Mr Mullin said he was not persuaded that Luton had abused its position in negotiating new charges. The introduction of a cap would require strong evidence of "abuse or potential abuse by an airport of a dominant position".
EasyJet had argued that Barclays bank, a 65% shareholder in the airport, was forcing Luton to threaten rises in landing charges and hence increasing ticket prices. The airline could transfer its base to Stansted, but would face higher landing charges there.
EasyJet pays a fee of around £1.60 for each departing passenger. Luton airport says it has to pay the local council £3 for each EasyJet traveller and wants to increase this fee to around £7.
Mr Mullin said he hoped the two sides could come to an understanding and that both would continue to flourish.
