Passengers travelling into two of the UK’s biggest hub airports, Heathrow and Gatwick, will be hit with higher fares – £1 billion in extra fares between 2014 and 2019 – as regulators propose an increase in airport charges from April.
The CAA has proposed set controls over airport charges for the next five years. Heathrow will be allowed to raise its landing fees at the rate of inflation, while Gatwick will be permitted to up its charges by a further 0,5%. The final decision is due in January 2014.
Airlines have reacted strongly to the news, arguing that passengers to the UK already face some of the highest taxes and charges in the world. IAG’s ce Willie Walsh says: “It is a bad day for our customers who have been let down by the CAA (Civil Aviation Authority). With this settlement, Heathrow will continue to levy charges well above other major hub airports.”
Airlines have blasted the CAA for “bowing to pressure” from Heathrow and its shareholders. In a statement, Virgin Atlantic, says: “The decision to further increase charges at the airport for the next five years is another hammer blow for both UK consumers and overseas visitors wanting to travel to this country.” The statement points out that prices at Heathrow are already triple the level that they were ten years ago.
Heathrow Airport initially called for charges to increase annually by inflation plus 4,6% over the next five years. Heathrow’s ce Colin Matthews says the CAA settlement risks Heathrow’s competitive position as well as its attractiveness for passengers and airlines.
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