Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

UK’s Heathrow, airlines appeal regulator’s landing fee cut

by Uma Rajagopal
0 comments
2023 04 19T110314Z 2 LYNXMPEJ3I08X RTROPTP 4 BRITAIN HEATHROW

UK’s Heathrow, airlines appeal regulator’s landing fee cut

By Sarah Young

LONDON (Reuters) -A cut to the fees Britain’s Heathrow can charge airlines faces separate appeals from the airport and two of its biggest carriers, British Airways and Virgin Atlantic.

Britain’s busiest airport says that investment will be undermined without a rise in fees, while the airlines argue that even with the cut, the fees are still excessive and Heathrow remains one of the world’s most expensive hubs.

Heathrow was told by the Civil Aviation Authority (CAA) in March that fees would need to fall during the 2024-26 period. Under the plan, Heathrow charges would drop to about 25.43 pounds per passenger in nominal terms over that period.

But in the latest chapter in a years-long battle between the airport and its customers, airlines say the CAA has not gone far enough. Both sides are appealing its decision.

Britain’s Competition and Markets Authority must now decide whether any of the appeals have grounds to proceed.

Heathrow argues it needs higher fees to provide a good service, pay its shareholders returns and fund investment.

“We believe the CAA has once again focused on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport service and resilience consumers want,” it said in a statement.

Virgin Atlantic said that the CAA calculations did not take account of a strong recovery in travel since the pandemic.

“The CAA decision contained multiple errors of fact and judgment, including pessimistic passenger forecasts that ignore the strength of recovering demand,” a Virgin spokesperson said.

Heathrow is owned by Spain’s Ferrovial, Qatar Investment Authority and other financial investors.

Qatar is also the largest shareholder in BA-owner IAG through its Qatar Airways unit.

(Reporting by Sarah Young; editing by William James and Alexander Smith)