CAA’s new CEO makes pledge on Heathrow costs
The Civil Aviaiton Authority’s new CEO Richard Moriarty has pledged to ensure Heathrow sticks to its commitment to keep prices ‘affordable’ after Parliament this week approved its plans for a third runway.
Moriarty, who is just 35 days into his new role, said he expected the airport to stick to its earlier promise to keep its charges close to its existing level.
Speaking at the ABTA Travel Matters conference, he said: "Be very clear that we will be using our voice to make it abundantly clear to Heathrow that they will be doing themselves a disservice if they don’t stick to the commitment they have made."
He said pressure from airlines had already led Heathrow to knock £2.5 billion off its estimated building costs for the third runway. "We will continue to put a lot of pressure on Heathrow to make sure they get this right."
And he pointed out that the CAA ultimately has the power to cap Heathrow’s charges.
However, Surinder Arora, founder and chairman of the Arora construction group, claimed the way Heathrow is regulated is out of date. Arguing that rival firms should be allowed to bid to build the third runway, he said: "The way the business is regulated there is no incentive for HAL (Heathrow Airport Limited) to be efficient.
"The reason they are inefficient is because the more they spend, the more they make."
He claimed a car park built by HAL at Heathrow T2 cost £62,000 per space, whereas his firm built a car park at Gatwick for £12,000 per space. He also claimed that the recladding of tunnels had gone three years and at least £39 million over budget.
His figures were disputed by HAL, who said Arora’s facts were ‘just not true’.
"All of the money we have spent has been approved by airlines and by the regulator," it said.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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