Heathrow gets green light from regulator to raise landing charges

Heathrow will be able to raise landing charges as the travel industry recovers from the pandemic, UK regulators said, a move set to deepen a bitter clash between one of the world’s busiest airports and the airlines that use it. The Civil Aviation Authority on Tuesday proposed allowing Heathrow to increase landing fees from GBP22 per passenger to between GBP24.50 and 34.40 over the next five years. However, it blocked the airport’s effort to nearly double its fees. Heathrow already has some of the highest charges in the world, and the costs are typically passed straight on to consumers through higher ticket prices. Landing charges have long been a source of dispute, but the scale of the aviation industry’s losses over the past 18 months have raised the stakes for airlines and the airport. Heathrow’s plan to nearly double its charges had sparked a furious backlash.Airlines on Tuesday said they would oppose the proposed increases in landing charges set out by the CAA “in the strongest possible terms”. Tim Alderslade, CE of lobby group Airlines UK, said the CAA was airlines’ last line of defence against “a monopoly-abusing hub airport”. “We need a strong regulator to clamp down on what is blatant gouging,” he said. Luis Gallego, the boss of British Airways owner International Airlines Group, said the “disproportionate” hike in fees at the UK hub airport, which serves as BA’s main base, would harm UK competitiveness. The CAA said the changes would be “affordable” for passengers while still allowing Heathrow’s owners to invest in the airport at a time of uncertainty over the strength of the recovery from the pandemic.<br/>