25th Feb 2019 14:06
LONDON (Alliance News) - International Consolidated Airlines Group SA has cut the Civil Aviation Authority out of negotiating a rebate deal with London's Heathrow airport, the Financial Times reported Monday.
IAG is a London-listed Anglo-Spanish firm and owns both British Airways and Iberia, as well as Ireland's Aer Lingus.
Heathrow will begin offering rebates to airlines on passenger-related charges, which the FT noted "could amount to several hundred million pounds".
The FT quoted IAG as saying it had cut the regulator "out of the loop and agreed a five-year repayment period directly with the airport".
According to the newspaper, IAG said the rebate agreement called into question the Civil Aviation Authority's ability to control the costs of the third runway planned for Heathrow.
"The CAA still has to approve the rebate deal and was kept informed of its development, but was not involved in devising it," the FT reported.
Shares in IAG were up 0.1% at 645.80 pence on Monday afternoon.
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