Heathrow has previously reported its intent to raise airline charges in the near future. However, this potential alteration has now been challenged by the competition watchdog in an intervention by the aviation regulator.
Though it is not set in stone, airlines are hopeful that this intervention will prevent Heathrow’s rising airline charges.
Following counter appeals to the Competition and Markets Authority (CMA) on airline charges by the airport, British Airways, Delta Air Lines, and Virgin Atlantic, the CAA has stepped in to propose alternative changes to the charges for airlines at Heathrow.
This move follows a market cap by the CAA last year. This cap determined that charge per passenger would not surpass £25.43 in 2024, £25.24 in 2025 and £25.28 in 2026.
Following the intervention, there will now be a 6-week long consultation period. Prior to this consultation, authorities have stated that there is potential for the charges to ultimately land around £1.52 in 2025 and £1.58 in 2026. If this change to the airline charges does go forward, Heathrow could be looking at caps of £23.72 in 2025 and £23.70 in 2026 for their future airline fees.
These proposed changes come in at 6% lower than the changes to airline charges that the CAA proposed for Heathrow previously. However, “compared to what charges would have been had no changes been needed”, this is actually a 3.5% increase.
Following this dispute, the CAA intends to review, and potentially modify, Heathrow’s licence in the summer. This would then spread out any adjustments over the course of the next two years.
“This allows Heathrow Airport Limited to reflect the decision when it consults on 2025 charges later in the year and is consistent with the requirements of the CMA’s final determination,” the CAA said.
The CMA is still in the process of reviewing some of how the CAA is handling airline charges alongside some smaller issues that they have stated may need to be changed in future.
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