London: The UK Civil Aviation Authority (CAA) reduced the charges London Heathrow airport will be able to levy from airlines over the next five years.
The hub said the fees don’t cover required investments and that the passenger experience is set to suffer. UK airports have already been struggling with resurgent traffic as pandemic restrictions ease, with flight and baggage-handling delays mounting.
The average maximum price per passenger that airlines will pay Heathrow will fall from £30.19 today to £26.31 in 2026, the CAA said Tuesday in its final proposals on the charges.
The regulator said that the pricing profile is based on an expected rebound in Heathrow’s passenger tally as the recovery from the coronavirus crisis continues, as well as the higher charging cap put in place in 2021 to reflect the challenges from the pandemic.
“Our independent and impartial analysis balances affordable charges for consumers while allowing Heathrow to make the investment needed for the future.” CAA Chief Executive Officer Richard Moriarty said in a statement.
Heathrow CEO John Holland-Kaye said:
“As the industry rebuilds, our focus is to work alongside airlines and their ground handlers to give passengers a reliable and consistent journey through Heathrow. The CAA continues to underestimate what it takes to deliver a good passenger service, both in terms of the level of investment and operating costs required and the fair incentive needed for private investors to finance it. Uncorrected, these elements of the CAA’s proposal will only result in passengers getting a worse experience at Heathrow as an investment in service dries up.
“Economic regulation should drive affordable private investment in Britain’s infrastructure to the benefit of users, not hamper it. The CAA’s proposal will undermine the delivery of key improvements for passengers, while also raising serious questions about Britain’s attractiveness to private investors.
“We will take time to assess the CAA’s proposal in more detail and will provide a further evidence-based response to this latest consultation. There is still time for the CAA to get this right with a plan that puts passengers first and encourages everyone in the industry to work together to better serve the travelling public.”
