British Airways owner IAG threatens to pull out of London City Airport if new owner ups fees

British Airways has vowed that it will not become a sitting duck at London City airport if a new owner ramps up landing charges.

The airline, which has been increasing flights from the Docklands airport and is its largest carrier, says it will move its planes to other London airports if it is has to.

London City airport was put up for sale by its American owners Global Infrastructure Partners last August with a reported £2 billion price tag.

However, International Airlines Group, which owns British Airways, believes that a sale at that level would lead to a hike in charges, as the new owner seeks to recover its outlay.

A spokeswoman for IAG said: “Air fares have fallen in recent years, but airport charges just seem to keep going up.

“There is no room at London City for more shops, so at the price that has been mooted, the only way a buyer could get a return is to increase charges.”

IAG has also made clear to Heathrow’s owners that it is not prepared to pay for a sharp increase in charges, to pay for a third runway.

Willie Walsh, chief executive of IAG, has said the group could refocus its operations in Spain or Ireland if Heathrow becomes too expensive.