Heathrow Airport, one of the priciest-per-passenger in fees charged to airlines and looking for an increase has instead been ordered by the UK’s Civil Aviation Authorities to cut the fees by 20% starting in January.
The CAA ruling comes less than a month after it also ordered Heathrow to cut its landing fees, also among the highest anywhere. The new order covers fees that are charged to cover costs of baggage-handling, security and other costs. The average maximum per passenger for this year is £31.57, and will drop for next year to £25.43. Heathrow had filed for a rate of nearly £40.
Heathrow’s operators are calling foul on both orders, saying they need the additional funds because with lower passenger numbers their fixed costs require higher fees, and they say it is unfair to their investors and will discourage them from investing more in the airport.
CAA and the airlines, however, say that Heathrow is playing too pessimistic about the regrowth in passenger numbers and that the proposed increases would actually drop passenger numbers, as many passengers will plan flights to or from other London airports, or in the case of international travel to other European hubs. Luis Gallego, head of Heathrow’s biggest customer, IAG, parent of British Airways, says that Heathrow is three times more expensive than Gatwick or Madrid, and five times more than Dublin, all important hubs for IAG’s airlines.
