London’s Heathrow airport says passenger experience set to suffer while UK airports have already been struggling with resurgent traffic as Covid-19 pandemic restrictions ease, with flight and baggage-handling delays mounting
Bloomberg | | Posted by Zarafshan Shiraz
The UK Civil Aviation Authority 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 the fees underestimate the cost of delivering a good service, both in terms of spending and operating costs and incentives needed to lure private investors.
“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.
Heathrow has been pushing to raise charges as much as 95% from an earlier level of £19.60 since Covid-19 wiped out much of the long-haul travel on which it relies. The CAA had been looking at a range of £24.50 to £34.50.
The regulator will publish its final decision on pricing in the autumn after considering responses to the proposals.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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