Ryanair escalated a long-running dispute with Britain's National Air Traffic Services (NATS) yesterday, announcing it would seek to block a rescue package for the troubled regulator unless it was tied to an "incentive scheme" that punished poor performance with financial penalties.
The budget carrier will voice its opposition to the proposals, which would allow the part-privatised regulator increase air traffic control charges in a bid to curb mounting debts, at a meeting with the British Civil Aviation Authority tomorrow.
And it raised the prospect of mounting similar challenges in Ireland and elsewhere, when it accused air traffic control providers across Europe of systematic overcharging.
Under the terms of its part privatisation last year, the regulator agreed to keep its prices 4 per cent below inflation. Hit by rising debts after the September 11th attacks and a consequent fall-off in long-haul traffic, it now wants to hike prices to 2 per cent behind inflation, a spokesman said.
Branding the regulator's request as "anti-consumer" and "anti-competitive", Mr David O'Brien, Ryanair's director of operations, said it was unthinkable that the organisation be allowed raise its charges when its service remained grossly inadequate.
