Virgin Atlantic tells Heathrow to ask shareholders to plug funding hole

Virgin Atlantic has joined criticism of Heathrow in a multibillion-pound funding row, saying the airport should ask shareholders for help before putting up charges on Covid-hit airlines. The airline urged Heathrow to “exhaust all private funding opportunities” instead of increasing airport charges, which could hammer profits for carriers already reeling from the collapse in global travel. A bitter row erupted when the Civil Aviation Authority concluded that Heathrow’s demands to raise fees by GBP1.7b were not proportionate. In response, the airport’s finance chief threatened legal action. Virgin Atlantic, majority owned by Sir Richard Branson, was taken to the brink of collapse this summer after the Government rejected a plea for GBP500m of state aid. It later secured GBP1.2b from shareholders and a hedge fund. In a letter to the CAA consultation, Virgin said it was pleased the regulator had “identified that [Heathrow] have provided little evidence to suggest that they have exhausted all their options to seek private funding, unlike Virgin Atlantic has been publicly required to do”. Virgin added that Heathrow should seek fresh cash from shareholders, who were handed more than GBP100m in dividends in April. In a separate submission, BA accused Heathrow of “double charging”. Story has details.<br/>