London Heathrow (LHR) will increase landing charges from next year, the UK’s aviation regulator has said
The UK Civil Aviation Authority has given the green light to London Heathrow airport to raise passenger charges— although it is not as much as the airport had wanted. The raise, however, has angered many airline groups.
London Heathrow (LHR) will increase landing charges from next year, the UK’s aviation regulator has said, in a move that is set to deepen the divide between the airport operator and its airlines. The UK Civil Aviation Authority (CAA) has set the maximum fees the airport can charge its airline customers for using the airport for the next five years. The regulator has proposed that Heathrow will be able to increase charges per passenger from £22 ($30.42) to between £24.50 and £34.40. However, the CAA refused the airport’s request to nearly double its fees.
The CAA also said it would work with Heathrow, airlines, and other stakeholders to bring down the range over the next few months. Heathrow had requested to increase the cap on its charges per passenger to between £32 and £43, the authority added. “We will test different scenarios with the industry, while continuing to monitor the sector’s recovery over the coming months,” a CAA statement said. “This means we will be able to hone our assumptions and narrow this range as we finalise the price control next year.”
An interim price control will come into effect from January 2022 and will remain in place until the final proposals have been implemented. Although subject to consultation, it will be about £30 per passenger.
The raise has also been targeted by IATA Director-General Willie Walsh, who said that passengers could end up paying 50 per cent more if the charge is set at the top rate. “It is vital the CAA demonstrates it has not been gaslighted by Heathrow into accepting their outrageous demands,” he added
“While international air travel is still recovering, setting a price control for Heathrow Airport against the backdrop of so much uncertainty means we have had to adapt our approach,” UK CAA CEO Richard Moriarty said. “Our principal objective is to further the interests of consumers while recognising the challenges the industry has faced throughout the COVID-19 pandemic.” He also said that the initial proposals seek to protect consumers against unfair charges and will allow Heathrow to continue to appropriately invest in keeping the airport resilient, efficient and one that provides a good experience for passengers”.
British Airways, owner International Airlines Group, has said that the planned increase was “disproportionate”. Luis Gallego, CEO said the rise would undermine the competitiveness of Heathrow compared with other European hubs. “A cost-efficient Heathrow would benefit travellers, businesses and the UK economy as a whole,” he said. “We will engage in the regulator´s consultation to ensure aviation can play its part to deliver this, and to advocate for UK consumers over the interests of Heathrow’s shareholders.”
The raise has also been targeted by IATA Director-General Willie Walsh, who said that passengers could end up paying 50 per cent more if the charge is set at the top rate. “It is vital the CAA demonstrates it has not been gaslighted by Heathrow into accepting their outrageous demands,” he added.
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