London Daily

Focus on the big picture.
Friday, Mar 24, 2023

Heathrow told to cut passenger charges again

Heathrow told to cut passenger charges again

Heathrow Airport has been told to cut passenger charges for airlines next year, in a move that should feed through to ticket prices.

The Civil Aviation Authority decided lower charges were required due to passenger numbers recovering quicker after the height of the pandemic.

Passenger charges are paid by airlines and go towards costs for terminals runways, baggage systems and security.

The average charge per passenger at Heathrow for 2023 is £31.57.

But the regulator said this will fall to £25.43 in 2024 and "remain broadly flat" until the end of 2026.

Although, the charges are paid by airlines, they can impact flight prices if companies decide to pass on some costs onto passengers via airfares.

It is understood bosses at Heathrow wanted charges to actually increase to more than £40, while airlines proposed they should be no more than around £18.50.

In response to the decision, the airport said the CAA's decision made "no sense" and warned it would "do nothing for consumers".

"The CAA has chosen to cut airport charges to their lowest real terms level in a decade at a time when airlines are making massive profits and Heathrow remains loss-making because of fewer passengers and higher financing costs," Heathrow said.

The airport said the regulator should be "incentivising investment" to rebuild aviation services following the heavy blows dealt to the industry during Covid.

But the CAA said its decision to introduce lower charges from 2024 recognised that passenger numbers were expected to return to pre-pandemic levels.

It said as well as benefitting travellers in terms of lower costs, the charges would also allow the airport to continue investing in its operations, including planned upgrades to its security scanners and a new baggage system in Terminal 2.

"Our priority in making this decision today is to ensure the travelling public can expect great value for money from using Heathrow in terms of having a consistently good quality of service, whilst paying no more than is needed for it," said Richard Moriarty, chief executive of the CAA.

In 2021, Heathrow was given permission to raise the passenger charge for airlines from £19.60 to £30.19 for the summer of 2022. The aim was to help it get through the pandemic.

But British Airways and Virgin Atlantic, two of Heathrow's largest airlines, have long complained that fees at the airport, the busiest airport in western Europe, are the highest in the world.


'Abuse of power'


Shai Weiss, chief executive of Virgin Atlantic, said the the regulator had "not gone far enough" in lowering passenger charges or ensuring that a "monopolistic Heathrow" was fulfilling its statutory duty to protect consumers.

"Heathrow has abused its power throughout this process, peddling false narratives and flawed passenger forecasts in an attempt to win an economic argument," he added.

Luis Gallego, chief executive of IAG, the parent company of British Airways, said "high charges" were "designed to reward shareholders at the expense of customers" and risked undermining the competitiveness of Heathrow.

Willie Walsh, director-general of the International Air Transport Association, which represents airlines, said the regulator was "hostage to Heathrow's pessimistic passenger outlook", and added the decision still meant airlines and passengers would "continue to pay one of the highest airport charges in the world".

"Given that Heathrow have succeeded in securing this generous settlement, we'll be watching their performance this summer and beyond very closely. Any repeat of the failures we have seen over the past few years would be totally unacceptable," he added.

Luggage piled up on some days last summer at Heathrow


Last summer, many airports across the UK struggled to cope with demand for international travel returning, with flights delayed and cancelled due to staff shortages. Many workers in the travel industry lost their jobs at the start the of the pandemic.

Mr Moriarty said the CAA had "considered the sharply differing views" from Heathrow and the airlines about the level of fees.

"Understandably, their respective shareholder interests led the airport to argue for higher charges and the airlines to argue for lower charges," he added.

Both airlines and the airport have six weeks to appeal the decision.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Paris: Some of the police are stepping down and showing solidarity with the protesters.
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Donald Trump arrested – Twitter goes wild with doctored pictures
You Are So Beautiful
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Postmodern Jukebox European Tour Version
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Sattahip Motor Show 20
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
SONATE AU CLAIR DE LUNE - Moonlight sonata
Paris Rioting vs Macron anti democratic law
A kiss to build a dream on
'Sexual Fantasy' Assignment At US School Outrages Parents
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Credit Suisse to borrow $54 billion from Swiss central bank
Mean Blues
The BBC problem about China
La Chansonnette
Strikes-Hit UK Pledges 94 Billion Euros In Cost-Of-Living Budget
Pattaya Addicts
Russian Hackers Preparing New Cyber Assault Against Ukraine
Franz Liszt - Liebestraum - Love Dream
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
Dream a little dream of me
UK face biggest fall in spending power for 70 years
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Unchained Melody sung like you've NEVER heard!
If this was in Tehran, Moscow or Hong Kong
Dave Brubeck - Take Five
Announcing GPT-4
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Rondo Alla Turca
Drew Barrymore
Kiss of fire
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
A brief banking situation report
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Israel Cachao López - Guajira Clásica
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Strauss - Radetzky March - Karajan
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
La vie en rose
Silicon Valley Bank exec was Lehman Brothers CFO
Despacito (Piano Cover) - Peter Bence
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Saudi Arabia has announced a major breakthrough in diplomacy with Iran after two years of intense talks
Orlando Cachaito Lopez Redencion
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Edith Piaf - NON, JE NE REGRETTE RIEN
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
RADETZKY MARCH-2008-Wien, New Year Concert
Elon Musk Is Planning To Build A Town In Texas For His Employees
Only you (And you alone)
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Strangers In The Night
Fitness scam
Charles Aznavour - La Boheme
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Summer time
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Aux Champs Elysees
Banking regulators close SVB, the largest bank failure since the financial crisis
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Watch: “They are wounded but unbowed, unbreakable.”
La Mer (Beyond the Sea) – Avalon Jazz Band
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
She
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
Radiohead - Creep
Motorist fined £650 after council ‘paints disabled bay around his car
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Brexit Deal Falls Short: UK Regains Few Pre-Brexit Benefits
Perhaps, Perhaps, Perhaps - Multi-Couples
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Pentatonix Havana
Brexit is done (sort of), again
Paula Cole - Autumn Leaves
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Oscar Benton Bensonhurst Blues
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
OH NANANA vs ABUSADAMENTE
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×