31st Mar 2026 08:44
(Alliance News) - The amount per passenger that Heathrow airport can charge airlines during the next five years will rise by 1% under new proposals.
UK regulator the Civil Aviation Authority announced on Tuesday it will consult on capping the west London airport's average charge for 2027 to 2031 at between GBP27.20 and GBP30.50.
The mid-point of GBP28.80 is 1% above the current figure of GBP28.40 for the five years to the end of 2026.
The proposed rate is 16% or GBP5.40 below what Heathrow recommended, and 25% or GBP5.80 above the amount suggested by airlines. Major users of Heathrow airport include International Consolidated Airlines Group SA, owner of British Airways. IAG shares were up 0.9% early Tuesday in London.
Heathrow Chief Executive Thomas Woldbye warned that the proposal may delay the delivery of "the innovation, progress and improvements customers expect".
As well as setting the cap on the maximum fees Heathrow can charge, the CAA also decides where and how much the airport can invest, and what it can spend on its daily operations and returns for shareholders.
The regulator is proposing to give the airport the go ahead for two-thirds of its suggested GBP9.5 billion capital expenditure programme, including revamping electrical networks and investing in security.
Some projects deemed to relate to Heathrow's plans to build a third runway will not be permitted under the proposals.
Funding the cost of expansion will be dealt with through a separate CAA process.
The CAA's initial proposals for 2027 to 2031 also set incentives for Heathrow to improve its service levels and environmental performance.
Selina Chadha, group director of consumer and markets at the CAA, said: "Our primary duty is to protect consumers and at the heart of today's proposals is doing the right thing for passengers using Heathrow airport, while supporting sustainable growth, investment and efficiency.
"Our proposals for the airport charges levied by Heathrow on airlines strike the right balance between keeping passenger prices fair, while enabling the airport to make the investment needed to improve services for the future.
"We encourage all stakeholders to provide us with their views on our initial proposals."
Woldbye said: "Heathrow continues to deliver for passengers – and this month they rated us amongst the best airports worldwide.
"We share the government's ambition to build on this momentum by expanding Heathrow and creating an airport the UK can be proud of.
"We will now review the CAA's initial proposal in detail to fully understand the implications for delivering the innovation, progress and improvements customers expect.
"On the face of it, the CAA's proposal may force choices that create trade-offs for service and delay delivery."
The CAA will publish its final proposals in November, followed by a decision in April 2027.
By Neil Lancefield, Press Association Transport Correspondent
source: PA
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