BAA, the airports operator, will be fined if it fails to improve customer service and cut security queues at Stansted airport, the industry regulator said.

The Civil Aviation Authority (CAA) said that a penalty system similar to that operated at Gatwick and Heathrow airports – also owned by BAA – would be introduced at Stansted in the wake of widespread criticism from passengers and airlines.

Ryanair has frequently voiced its anger about the quality of service offered by BAA at Stansted. On Monday, members of Plane Stupid, a group protesting against airport expansion, caused chaos by setting up a demonstration close to the Essex airport’s runway. Forty-nine people have been charged with aggravated trespass, with a further seven released on bail.

The aviation regulator has also ruled that landing charges at Stansted should increase only by the rate of inflation plus 1.63 per cent over the next five years, much less than BAA had requested. It will take the charge per passenger levied on airlines using Stansted from £6.34 this year to £7.05 in 2013-14, against £6.05 last year.

BAA had asked for charges to rise by the rate of inflation plus 7.1 per cent, to help it to pay for new infrastructure – a second runway and a new terminal – at the airport. A spokesman for BAA said: “We are disappointed that a significant element of our spend to date has been disallowed. We will continue to press for a regulatory framework which reflects the full cost of bringing forward the second runway proposals at Stansted.”

However, some airlines say that BAA should not be allowed to raise the landing fee any further. Jim Callaghan, Ryanair’s head of legal affairs, said: “The prices announced by the CAA are still out of line with what efficient airports are now offering throughout Europe and only competition between the three main London airports will achieve better services and competitive prices.”

Harry Bush, the CAA’s head of economic regulation, defended the increases. “Our proposed price controls protect passengers and airlines whilst maintaining good levels of service. ”

The Competition Commission is investigating BAA’s monopoly control of London’s airports. In its preliminary report, it said that BAA should sell three airports, including two in London. The International Air Transport Association has predicted that the global aviation industry will lose $2.5 billion (£1.69 billion) next year. Losses this year will be about $5 billion because of high fuel prices and falling demand, it said.

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