London Heathrow has submitted a proposal to regulators for a 17% increase in airline landing charges to pay for a £10 billion (R241 billion) investment programme that will up the airport’s capacity to 92 million passengers a year.
The five-year plan submitted to the UK Civil Aviation Authority (CAA) would increase the fee per passenger from its current average of £28,46 (R688) to about £33,26 (R804).
Virgin Atlantic and British Airways parent company, IAG, have filed an appeal with the UK CAA to review the way in which Heathrow is regulated for the benefit of customers, businesses and economic growth.
IAG claims that the hike will actually be 25% above the published prices in 2024, while Virgin claims that Heathrow is taking advantage of its monopoly as UK’s only air hub.
Travel News previously reported that the Heathrow investment programme would be used to upgrade existing infrastructure and lay the groundwork for a third runway.
It has now been revealed that it will be used to redevelop the central terminal area and extend Terminal 2, as well as to add new lounges, shops and restaurants.
The third runway proposal has to be submitted to the Department of Transport separately for approval by July 31.
