Heathrow airport appeals order to slash airline charges by 20%

BLOOMBERG 

London’s Heathrow Airport asked Britain’s antitrust watchdog to overturn an order by the nation’s aviation regulator to cut airline charges by around 20% per passenger next year.
The airport said it had submitted an appeal to the Competition and Markets Authority (CMA) over the Civil Aviation Authority’s (CAA) decision to drop charges for airlines using the travel hub.
Heathrow and the world’s biggest airlines have clashed over the charges, which are among the highest globally. The CAA said in March the levy should drop to £25.43 ($31.55) per passenger in 2024 from £31.57. The UK’s competition agency will now need to decide whether to accept the appeal.
“We believe the CAA has once again focussed on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport service and resilience consumers want,” said a Heathrow spokesperson.
Separately, Virgin Atlantic Airways Ltd said it’s also appealing the decision on separate grounds, claiming that the CAA didn’t go far enough to cut the charges. The airlines argue the charges aren’t justified given the rapid rebound in flying post-pandemic.
“The CAA did not go far enough in its final determination, resulting in excessive Heathrow charges that expose a fundamentally broken regulatory framework,” a Virgin Atlantic spokesperson said.
A CMA spokesperson said it will consider the applications for permission to appeal and provide an update by May 16.