BAA has struck out at the Competition Commission after it limited the profit it can make within the next five years.
As part of its regulatory settlement, the airport operator has been ordered to cut from 7.75% to 6.2% the rate of return it makes on the assets it holds at Heathrow, while Gatwick has been capped at 6.5%.
In return the Competition Commission has recommended airport charges rise by 7.5% at Heathrow, while they should be cut by 0.5% at Gatwick.
BAA chief executive Stephen Nelson said: “We see little in the Competition Commission’s report which delivers the incentives to transform the airports. Nor do we believe that the CC recognises the scale and nature of the challenges we face in seeking to deliver a step change in the passenger experience.
“At a time of increased complexity and risk in the UK airports sector, the Competition Commission is proposing a dramatic reduction in returns at Heathrow.
“As we prepare to hand over Terminal 5 on time and on budget, we are being rewarded with a regulatory settlement of unprecedented severity. It is striking that at Gatwick, one of the busiest yet cheapest airports in Europe, the Competition Commission is recommending cutting prices.
“We have proposed exciting plans to deliver £4 billion of investment and transform these national assets by 2012. We are still looking to the Civil Aviation Authority to provide the appropriate framework to deliver this.”