Heathrow questions funding for new UK runways
Heathrow boss Colin Matthews claims private investors will refuse to fund much-needed new runways in the UK if the Civil Aviation Authority goes ahead with plans to reduce the returns that can be made on their investment.
Writing in the Daily Telegraph, Matthews claimed international investors were already reassessing investing in Heathrow and other UK industries.
Heathrow’s chief executive suggested the latest pricing proposal from the CAA, which governs how much the airport can charge airlines for its services, could put at risk funding for major projects, including a third runway.
"The return on capital investment allowed by the regulator five years ago was 7.75pc, and then it dropped to 6.2%," he wrote.
"Since then Heathrow has made a pre-tax loss in every year and shareholders have received less than 1% per annum return on their investment. That is unsustainable. Now the regulator is proposing to cut returns further to 5.35%.
Heathrow wants to increase its charges by 5.9% above inflation for five years from 2014 but was the CAA believes it should cap prices at 1.4% below inflation.
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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025