British air parent: Break Heathrow monopoly

British Airways wants more competition at London’s Heathrow Airport, but not from other airlines. Its parent company is calling for allowing independent companies to build an operate terminals at the airport, which is BA’s biggest base.

The airport is operated by London Heathrow Airport, which has a monopoly on building and operating terminals and other infrastructure. The airport is about to add a third runway and other facilities, and BA’s parent, IAG, has asked the Civil Aviation Authority to end the monopoly in the interests of lower cost and better service.

IAG chief Willie Walsh told The Guardian (UK) that “Heathrow’s had it too good for too long and the government must confirm the CAA’s powers to introduce this type of competition. This would cut costs, diversify funding and ensure developments are completed on time, leading to a win-win for customers.”

Most major U.S. airports have terminals operated or leased by airlines and other companies; BA operates its own terminal at JFK, also serving other airlines as ‘landlord.’ Some German airports, such as Frankfurt and Munich follow a similar plan.

Heathrow officials snapped back that “Anyone who has had the misfortune of connecting through JFK airport will know this is not a passenger experience we should seek to replicate at Heathrow.”

Of course, it’s possible that some of Walsh’s anger at LHA may come from another aspect of the expansion plan. Last November, Walsh was shocked to discover that the authority’s plans to acquire property near the airport included demolition of IAG’s showcase headquarters near the airport—largely at IAG’s expense, since it is the airport’s biggest customer!

Photo: Mark Bouter/Wikimedia

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