Airlines respond to CMA Heathrow Airport fees decision

Friday, 17 Oct, 2023 1

Virgin Atlantic has responded to the Competition and Markets Authority’s final determination of Heathrow airport charges.

The airline found it ‘disappointing that the CMA has largely endorsed the CAA’s decision.’

It did not go far enough to protect travellers from excessive charges at the airport, Virgin Atlantic says.

“Heathrow Airport’s repeated attempts to impose excessive charges demonstrate how the regulatory framework is broken.”

With new leadership at both the CAA and Heathrow, now is an apt time for a ‘fundamental review of how charges are set.’

Virgin Atlantic cooperated closely with the CMA throughout the appeal process.

The CAA had based its final determination on ‘pessimistic annual passenger forecasts’ Virgin says.

Virgin Atlantic later filed an appeal to the CMA in April 2023.

“We found that the CAA’s Heathrow price control struck broadly the right balance between ensuring prices for passengers are not too high and encouraging investors to improve the airport over time,” said the CMA’s Kirstin Baker.

However the agency has ordered the CAA to look again at ‘a handful of smaller issues.’

“Heathrow’s charges remain among the highest in the world and are not competitive,” said Luis Gallego, CEO of BA parent IAG.

“We would like to work with the CAA to improve the regulatory framework for the future.”

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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