The UK’s Civil Aviation Authority has told London Heathrow to cut its charges……
The UK’s busiest airport, London Heathrow, has been told it needs to cut its charges following a gigantic increase in December 2021. The airport was given permission to raise the passenger charge – the fee it charges airlines to process each passenger, from £19.60 to £30.19.
Heathrow had wanted to charge a massive £41.95 which it says would be put into improvements, including a new baggage system for Terminal 2, but now the CAA is saying this fee must come down to £26.31 by 2026.
Richard Moriarty, chief executive of the CAA, said the fee reduction was "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."
John Holland-Kaye, Heathrow’s boss moaned that the CAA "continues to underestimate what it takes to deliver a good passenger service, both in terms of the level of investment and operating costs required and the fair incentive needed for private investors to finance it. Uncorrected, these elements of the CAA's proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up.”
Because of its market dominance and position as one of Europe's leading airports, those in control at Heathrow seem to think they can get away with anything and with a single pair of slots on its runway going at upwards of £5 million, you can understand why. But, as London's premier airport slips down the passenger numbers and satisfaction tables, how long can they behave in such a brutish way? If Gatwick gets its second runway, they'll be more opportunity and capacity for competition, which will, in turn, could drive prices down. But, a more joined-up approach is needed, Heathrow needs to discuss with customer airlines, retail, food and beverage concessions, handling agents and consumers the full impact of everything to do with a passage through the airport. Only that way can they get a true picture of the world of the airport as a whole and how even a single misstep from one of those parties can tarnish the whole journey. John Holland-Kaye's assertion that the lowering of the charges will result in worse customer service is, a bit far-fetched, to be polite, it'll just mean he won't be able to pocket such a hefty bonus. The investment won't dry up just because a charge is lowered for the good of the consumers, if they do, not only are they shortsighted but also incompetant. One phone call today and I could have a replacement investor that could take up the mantle.
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