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The Telegraph
The Telegraph
8 Mar 2023


Heathrow Airport has been told to cut passenger fees it charges airlines next year following a row with carriers including British Airways.

Passenger airport charges at Heathrow will fall by a fifth to £25.43 next year – but remain significantly higher than pre-pandemic levels.

Faced with huge losses as a result of the Covid shutdown, Heathrow had lobbied for charges to be increased to £40.

Airlines, meanwhile, demanded the charges were half of that figure at £20.

In a final decision that will disappoint the airport's shareholders and Heathrow's airlines, the Civil Aviation Authority (CAA) has announced its final determination over what can be charged over the next four years.

Fees will remain at an average of £31.57 this year – in line with 2022 – before falling to £25.43 for the following three years.

Prior to the pandemic Heathrow charges were £22.91 per passenger.

Heathrow and its airlines have repeatedly clashed as the Civil Aviation Authority (CAA) repeatedly delayed its final determination on passenger charges.

Airlines claim Heathrow is already one of the world's most expensive airports and the main reason charges need to be increased is to service one of the UK's biggest corporate debt piles and allow dividends to be paid to its predominantly overseas shareholders.

The airport, meanwhile, has argued that it needs to increase charges to invest in vital upgrades to terminals and their facilities.

Willie Walsh, former British Airways chief executive and now director-general of trade body IATA, on Wednesday for a “fundamental review” into Heathrow pricing after accusing the CAA of being a “hostage to Heathrow’s pessimistic passenger outlook”.

Heathrow is owned by a consortium led by Spanish infrastructure firm Ferrovial, alongside sovereign wealth funds from Qatar, Singapore and China and pension funds.

Critics argue that some £4bn has been paid in dividends to shareholders since 2012.