Heathrow plans to hike passenger charges
Heathrow is planning to increase charges by almost £8 per passenger to fund a further £3 billion investment programme.
The extra cash will help fund the opening of the new Terminal 2 next year, improved check-in and baggage facilities and the construction of new taxiways and stands to allow Heathrow to accommodate the latest aircraft.
It has applied to the Civil Aviation Authority to increase charges for airlines to use the airport from 2014 to 2019.
If approved, the airport’s tariff will gradually rise from the equivalent of £19.33 per passenger in 2012/13 to a maximum of £27.30 in 2018.
However, some of the airport’s biggest airlines – including British Airways and Virgin Atlantic – have told the CAA they are opposed to price increases. A BA spokesman said that instead there should be "significant" price cuts.
"Heathrow Airport’s charges have already tripled over the past 11 years," he said. "The charges must be reduced significantly over the coming years, especially when the airport is cutting investment by around 25 per cent from next year onwards.
"We hope the regulator will give a fair ruling in the months ahead, which doesn’t penalise customers and airlines.
"Any investment plans between 2014 and 2019 should be targeted and efficient. We believe Heathrow Airport can make significant savings to its inefficient cost base while still investing £3 billion in improving the overall customer experience."
The airport said it believed its plans "represent good value for passengers, airlines and the UK".
"Our investment will deliver a better journey for passengers, more efficient and reliable infrastructure for airlines, and additional jobs, trade and economic activity for the UK."
However, it said that Heathrow’s business plan needed also to "deliver a fair return to shareholders". Over the last regulatory period (Q5), passenger numbers have fallen 10% below the level anticipated by the CAA, resulting in a £650 million drop in anticipated income from aeronautical charges, it said.
"Heathrow cannot recover this cost now or in the future," it said. "Correcting the passenger forecast for Q6 inevitably results in increased prices."
The CAA will develop and consult on its own proposals for Q6 and deliver its decision on airport charges in January next year.
By Linsey McNeill
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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