Both Heathrow and three airlines (at the two opposing ends of the argument) are appealing the UK CAA’s decision on the cuts to passenger charges at Heathrow.
Heathrow says the charges are being set too low. But the airlines, BA, Virgin and Delta, say the charges are being calibrated from too high a start – they criticise the methodology used by the CAA, (devised by Heathrow), to arrive at their conclusion, and say that the recovery surge post pandemic has not been taken into account. They also say that these are some of the highest charges in the world.
Reuters reports Virgin saying: "The CAA decision contained multiple errors of fact and judgment, including pessimistic passenger forecasts that ignore the strength of recovering demand…The CAA did not go far enough in its final determination, resulting in excessive Heathrow charges that expose a fundamentally broken regulatory framework,…”
In March, the CAA informed the airport that charges needed to fall from the current £31,57 (R700) by 20% to £25,43 (R562) per passenger.
The three airlines maintain that, even with the cut, the fees are excessive.
On the other hand, the airport says investment would be undercut without the desired a rise in charges, claiming: "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.”
Britain's Competition and Markets Authority will decide the appeals.
