Ryanair announced today it has referred BP to Britain's Office of Fair Trading (OFT) for trying to put up delivery charges for aviation fuel at two airports by 50 per cent.
The budget airline accused Air BP of profiteering and using its monopoly position as fuel supplier at Belfast City and Prestwick airports to introduce unjustified increases.
Airline chief executive Michael O’Leary said: “Because they have a monopoly, they are determined to abuse it. We can’t get a rational explanation from Air BP so we have asked the OFT to write to them and ask.”
Speaking at the George Best Belfast City Airport, Mr O’Leary hit out at BP, declaring: “They have seen an opportunity to gouge airlines and passengers at Belfast City and Glasgow with a 50 per cent increase on delivery charges.”
He said delivery charges were not cheap without the increase and he dismissed explanations given to him by Air BP that it had to impose the charge because business was down.
He said the airline was calling on the OFT to take immediate action against Air BP to prevent it imposing “these abusive and unjustified increases”.
Mr O’Leary added: “At a time of recession, when consumer confidence is collapsing, this kind of blatant abuse by a massively profitable oil company cannot be accepted.”
BP expressed surprise at the Ryanair move and said it was confident it had not infringed competition law.
The company said: “Prices are agreed by mutual negotiation. They need to reflect current market and cost environments.
“Air BP believes the prices offered to Ryanair are reasonable and is confident that it has not infringed any competition laws.
“We are surprised that Ryanair has chosen to involve the competition authorities in these commercial negotiations, and are of course available to assist the competition authorities if they require it.”
Ryanair said Belfast City Airport had made it known to them that if BP and the airline were unable to agree on pricing, then the airport would look at introducing alternative suppliers.
The airline boss said that of the 150 airports around Europe at which Ryanair operates, Belfast City and Prestwick are the only two where Air BP has a monopoly and where such charges are being threatened.
He said the airport told Ryanair it had not imposed any infrastructure cost increases on BP which could justify the price rise.
An OFT spokesman said: “The OFT will consider any complaint received carefully and will consider whether to investigate further.”
PA