EasyJet's Gatwick price claims rejected

LONDON (Reuters) - The High Court has dismissed allegations by low-cost carrier easyJet that price increases approved at Gatwick airport last year were legally flawed, the Civil Aviation Authority (CAA) said on Friday.

EasyJet had accused the CAA, which regulates the airports network, of unlawfully raising the cost of using the airport, claiming that the price hike followed private talks between the regulator and the airport's operator BAA after the deadline for a consultation period passed.

"The CAA is pleased with the outcome of this judicial review," CAA Group Director Economic Regulation Harry Bush said in a statement. "This provides an opportunity to draw a line under the most recent price control reviews of Heathrow, Gatwick and Stansted and to focus on future regulation of airports."

The court did, however, grant easyJet the right to appeal, the CAA said.

The low-cost carrier had said the decision to increase the maximum charge per passenger using Gatwick by 1.18 pounds to 6.79 pounds would cost it 46 million pounds in extra fees over five years.

The CAA says the price increases are necessary to pay for modernisation and improvements in services, including additional security costs at the airport which lies to the south of London.

(Reporting by Paul Hoskins)