Compensation could push up fares

Tuesday, 27 May, 2003 0

Ministers say those blighted by aircraft noise should get better pay-outs

Increased compensation for residents whose homes are blighted by aircraft noise could lead to higher air fares for passengers.

According to report in The Independent, the Government is planning new rules that will force the airport operator BAA to double the amount of money it pays to those who are affected by aircraft noise. The newspaper reports that ministers believe some £2.5 billion should be allocated for compensation for those affected by a new short runway at Heathrow – previous estimates had put the figure at half that amount.

A “source” told the newspaper that legislation would “inevitably” lead to an increase in air fares, adding: “The airport operator will seek to pass the costs on to the airlines and the airlines will pass the on to their customers.”

A spokesman for some 70 local authorities which support the development in the south-east of the country said the proposed rules would mean expansion of existing facilities would be less likely: “If the Government is planning new legislation it will inevitably lead to a huge bill even before one yard of runway is laid.”



 



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