Heathrow Airport Ltd has won a legal battle for back rent on land nd buildings at the airport used for in-flight catering operations. A High Court judge ruled that HAL had not abused a dominant position as landlords in breach of EC laws when setting the rents.
The land and buildings in question were originally leased to Forte (UK) Ltd in 1990. They assigned the lease in January 1997 to Alpha Airport Holdings (UK) under a licence to assign which contained a guarantee by Alpha Airports Group, including covenants to pay rent.
The High Court claim relates to the period during which the 35 year lease, which contained provisions for rent to be paid at 6% of the lessee’s business subject to a minimum of £150,000 pa, has been held by Alpha.
It was argued that the rent levels set by HAL were excessive, unfair and discriminatory and that there had been an abuse by HAL or by the British Airports Authority under EC regulations of their dominant market position.
However Deputy High Court judge Lawrence Collins QC, rejected their argument. He said he was satisfied that Alpha had failed to show they had an arguable defence to HAL’s claim for the rent owed.
He said that in particular they had failed to show there was an arguable case that the rent levels stipulated in the lease amounted to an abuse under Article 86 of the EC Treaty of HAL’s dominant position.
EGi News 02/02/98
