Passengers flying out of Britain’s busiest airport are paying inflated fares because British Airways effectively has a monopoly over many routes, it is claimed.A group of former Government advisers suggests people using key routes could typically be paying 10 per cent more for their tickets - around £80 for a return - because of a lack of competition.
The analysis calculates that the International Airlines Group (IAG), where BA is the largest carrier, operated 77 monopoly routes out of the Heathrow this summer to destinations such as San Diego, Madrid and Osaka as well as from Glasgow and Belfast.The claims come from WPI Economics, which is calling for a second UK flag carrier to be given slots out of Heathrow to bring down fares and increase choice for passengers as a result of expansion linked to the building of a third runway.
Britiah Sirways is part of a group of carriers called the International Airlines Group (IAG), whose other brands include Iberia, Aer Lingus and Vueling.
The study states that around one in four passengers - or 18.5million people - had to fly on routes from Heathrow where they had no choice but to fly with IAG, RELATED ARTICLES Previous 1 Next
British Airways pilots WILL strike again as they vow to hit.
British Airways flights disruption is set to continue today... Share this article Share The research was supported by BA’s rival, Virgin Atlantic, which would hope to gain extra flights, passengers and profits if it was able to grab the lion’s share of new take-off and landing slots that are anticipated.
The study states that around one in four passengers - or 18.5million people - had to fly on routes from Heathrow where they had no choice but to fly with IAG, whose other brands include Iberia, Aer Lingus and Vueling.WPI experts say someone flying directly on a return flight from Heathrow to Osaka on BA could expect to pay £838.
They argue that if there was another airline to choose from the total cost could be reduced to £754.The fares charged by BA has helped the parent company deliver stellar annual profits of around £2billion.The company’s pilots have been on strike this week, bring disruption to thousands of people, because they argue they deserve a greater slice of this money.
The report, ‘Letting competition fly: the case for two national flag carriers’, is co-authored by Matthew Oakley, a former senior Treasury official, and James Edgar, a former senior economist at the Department for Transport.They say that BA’s dominance at Heathrow is a reflection of flaws in the way take-off and landing slots are allocated.
. Currently, IAG operates over half of all slots - 55per cent.And they claim the proportion of routes where IAG has no competition has risen from 18per cent in 2005 to 39per cent today.As a result, between June 2018 and May 2019, almost one in four.....