The Civil Aviation Authority (CAA) of the United Kingdom, the body responsible for regulating activity in the country, today published its final ruling on the annual caps on the fees that London Heathrow Airport will charge airlines until the end of 2026.
The regulator confirmed that the values currently in place will remain in line with the level set out in its interim decision earlier this year.
Stable charges at Heathrow until 2026
Maximum fare will fall by nearly 20%: from £31.57 per passenger in 2023 to £25.43 in 2024 and remain broadly stable until 2026. The average fare over the period will be £27.49.
The figures are set in nominal prices and are subject to change in line with inflation during the price control period.
According to the Civil Aviation Authority, the cap will benefit passengers. This is important because air traffic is expected to fully recover over the next few years. It will also allow Heathrow management to continue to invest in improvements for customers and fund its operations.
«The decision also reflects changes in the wider macro-economic environment, in particular updated forecasts of inflation and interest rates since the final proposals were published», the regulator said in a press release.
According to the Civil Aviation Authority, £3.6 billion will be invested over the next few years to modernise security infrastructure, baggage handling and other services.
Controversy between Heathrow and the airlines
Heathrow Airport had called for charges to rise to £40 per passenger, while the airlines suggested they should not exceed £18.50 on average.
A number of airlines have long pointed out that the airport’s charges are among the highest in the world. In that context, the reduction announced today would benefit them by reducing their operating costs when using the facilities.
«Our priority in making this decision today is to ensure the travelling public can expect great value for money from using Heathrow in terms of having a consistently good quality of service, whilst paying no more than is needed for it», said Richard Moriarty, Chief Executive at the UK Civil Aviation Authority.
He explained that the divergent proposals from Heathrow and the airlines on the future level of charges were discussed. In this sense, he said that «understandably, their respective shareholder interests lead the airport to argue for higher charges and the airlines to argue for lower charges».
«Our job is to reach an independent decision from these conflicting commercial interests and focus on what is in the best interests for the travelling public that will use Heathrow in the years to come», he concluded.
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