Charges at Heathrow

Possibly the most expensive airport in Europe, Heathrow has now been told to reduce its charges.

The Civil Aviation Authority (CAA) said the cap on the west London airport’s average charge per passenger should fall from today's £30.19 to £26.31 in 2026. Add to that £5 per car for access.

The decision follows a bitter dispute between the airport and airlines about what the cap should be.

Heathrow was given permission to increase its average fees on 1 January from the previous level of £19.60 due to the collapse in passenger numbers caused by the coronavirus pandemic.

Richard Moriarty, Chief Executive, CAA, said that the announcement is “about doing the right thing for consumers”.

He insisted the regulator has “listened very carefully” to arguments from Heathrow and airlines.

“Our independent and impartial analysis balances affordable charges for consumers, while allowing Heathrow to make the investment needed for the future”, he said.

The CAA believes Heathrow will still be able to invest in improvements, such as next-generation security scanners and a £1.3bn upgrade of baggage facilities at Terminal 2. Although T1 closed in 2014 some of its baggage facilities are still being used for T2.

Responding to the CAA’s final proposal, John Holland-Kaye, CEO, Heathrow, 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”.  And he added what some might call a threat.  “Uncorrected, these elements of the CAA’s proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up”.  He said that it would take time to assess the CAA’s proposal in more detail.

The airport’s main customers, Virgin Atlantic and British Airways’ owner IAG, welcomed the news, praising the regulator for putting passengers first.

“The CAA has recognised that Heathrow needs to be more efficient for the benefit of consumers”, said Luis Gallego, CEO, IAG. “Global Britain needs a competitive hub and we look forward to continue working with the CAA to make this happen”.

Shai Weiss, Chief Executive, Virgin Atlantic, was positive.  “With travel recovery underway, our collective focus should be on upholding the best possible experience for customers with fair charges, especially with consumers facing cost of living pressures and our Global Britain aspirations at stake”.

www.heathrow.com

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