CAA cuts

Heathrow boss blasts cut in passenger charges

Queues at Heathrow

Heathrow airport boss John Holland-Kaye said a new passenger price cap announced by the Civil Aviation Authority underestimates the cost of delivering a good passenger service.

He warned that cutting charges by 6% a year to 2026 would hit investment in the airport.

Using Office for Budget Responsibility inflation forecasts, the average maximum price per passenger that airlines will pay Heathrow will fall from £30.19 today to £26.31 in 2026. 

Mr Holland-Kaye said: “The CAA’s proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up.

“Economic regulation should drive affordable private investment in Britain’s infrastructure to the benefit of users, not hamper it. The CAA’s proposal will undermine the delivery of key improvements for passengers, while also raising serious questions about Britain’s attractiveness to private investors.

“We will take time to assess the CAA’s proposal in more detail and will provide a further evidence-based response to this latest consultation. There is still time for the CAA to get this right with a plan that puts passengers first and encourages everyone in the industry to work together to better serve the travelling public.” 

Richard Moriarty, chief executive at the CAA, said: “Today’s announcement is about doing the right thing for consumers.  We have listened very carefully to both Heathrow Airport and the airlines who have differing views to each other about the future level of charges.

“Our independent and impartial analysis balances affordable charges for consumers, while allowing Heathrow to make the investment needed for the future.”

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