The UK Competition and Markets Authority (CMA) has responded to Heathrow Airport, British Airways, Delta Air Lines and Virgin Atlantic’s appeals on the airport’s charges.
Earlier this year, the airlines and airport filed appeals against the cap on Heathrow’s average charge per passenger, which is usually passed on to passengers. Airlines believed it was excessively high but the airport believed it was too low to fund future investment into services.
The CMA agreed with the airlines’ appeal regarding the way in which the CAA calculated the cost of debt for the airlines and exceptional events. It also agreed that the adjustment was a way for the airport to recover revenue lost during the pandemic.
The review of the CAA’s verdict has done nothing, however, to end the tensions between the airlines and the airport.
“After three years of consultation, it's disappointing that the CMA has largely endorsed the CAA's decision, which did not go far enough to protect consumers from excessive charges at Heathrow," a Virgin Atlantic representative said. "The airport has prioritised shareholders over consumers, relying on pessimistic passenger forecasts to support its agenda, in stark contrast to the actual number of passengers flying from Heathrow, which is close to pre-pandemic levels."
Heathrow said it was "carefully considering the CMA's initial findings to understand what impact they may have on passengers and our ability to deliver our investment plans".
The CMA is expected to make a final decision next month.
