SIR MICHAEL BISHOP, chairman of bmi british midland, Britain’s second-biggest airline, called on the Government yesterday to end BAA’s monopoly over London’s three principal airports.

Sir Michael accused BAA of abusing its monopoly control of Heathrow, Gatwick and Stansted.

The Government is considering an expansion of airport capacity in southeast England, and Sir Michael said BAA should be excluded from running any new developments.

Two months ago BAA was given permission by the Civil Aviation Authority to raise landing charges at Heathrow by 40 per cent.

Sir Michael said yesterday: “The temptations of a monopoly position are strong indeed and recent events suggest BAA has succumbed . . . We are asking that Government first consider ring-fencing BAA at its current sites to existing operations — and that the construction and operation of new facilities, including runways, should involve new operators, offering a truly competitive environment.”

The Government is preparing proposals on tackling airport congestion over the next 30 years, and is expected to publish a White Paper by the end of the year. Sir Michael’s views were supported by Keith Brooks, chief executive of TBI, which owns Luton, Cardiff and Belfast International airports.Mr Brooks said: “It is significant that such a well-respected figure in the airline business should challenge BAA’s monopoly. BAA’s monopoly acts against the customer and the public.”

A spokeswoman for BAA dismissed the claims. Having two companies operate the runways at Heathrow “would be an operational nightmare and could even be a safety risk”.

Meanwhile, bmi said it was reducing its workforce by up to 1,500 over the next three years as part of a £100 million cost-saving plan. Austin Reid, its chief executive, pledged the reductions would be through natural wastage. Bmi recorded a £19.6 million loss last year.