All passengers flying out of London’s Heathrow Airport are now paying a new charge that appears to be making up some part of the airport’s losses, although it denies that it is either a subsidy or a scheme to make passengers pay for its losses.
The fee of £8.90, or about $12.25, is listed on tickets as R1, with some airlines adding more detail; Virgin Atlantic lists it as “United Kingdom Exceptional Regulatory Charge.” First spotted by British loyalty website Head for Points, it began appearing last week along with the usual assortment of facilities charges, taxes and more.
The U.S.-based Points Guy site queried Heathrow, which is separately negotiating with the British government for bailout funds. Heathrow management denied that it is anything like a bailout, or that they profit from it, and supplied a list of things they provide to airlines: “Heathrow provides key airport services like the baggage system, colleague car parks, airline check-in desks and utilities for our partners to use. The fee to use these services is calculated purely to cover the cost of providing them – Heathrow makes absolutely zero profit from these services.”
Apparently, however, the airlines are not paying enough of those fees, because, according to Head for Points, the airport’s official description is that “THE EXCEPTIONAL REGULATORY CHARGE IS COLLECTED TO MANAGE THE UNDER-RECOVERY OF OTHER REGULATED CHARGES.” And, apparently, it’s easier to slip a fee onto the end of the ticket than to get more out of the cash-strapped carriers. The fee has not popped up at London’s other major airports.
UPDATE
Heathrow is not alone at hunting for sources of revenue in troubled times. London’s #2 airport, Gatwick, is ready to start collecting tolls from drivers dropping off passengers at its terminals.
Every car that stops to drop off or pick up passengers will pay at least £5 for the privilege, good for up to ten minutes. After that, the change goes up at £1 a minute, capping off with thirty minutes and £25. The charges start March 8.
Drivers who want to avoid the charge can drop off at the airport’s distant long-term parking lots, where a free shuttle is available.