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Competition regulator backs Heathrow Airport charges
The Competition & Markets Authority has provisionally backed the CAA’s determinations on Heathrow Airport charges billed to airlines.
The regulator was correct in ‘most” parts of the determination.
The CMA agreed with airlines in a ‘relatively minor’ way.
British Airways, Delta Air Lines and Virgin Atlantic filed an appeal against the CAA’s original decision.
The CAA had said a cap on airport charges per passenger must be dropped from £31.57 for 2023 to £25.43 over the next three years.
The airlines said this was insufficient and didn’t go far enough.
“After three years of consultation, it’s disappointing that the CMA has largely endorsed the CAA’s decision,” Virgin Atlantic said in a statement.
“It did not go far enough to protect consumers from excessive airport charges at Heathrow.”
“The airport has prioritised shareholders over consumers, relying on pessimistic passenger forecasts to support its agenda.”
“Under the incoming CEO, Heathrow must now put customers first.”
Heathrow has handled 44.7 million passengers this year through July 2023 with average load factors of 78%.
“While it determined there are a small number of issues that we should review again, these are not expected to have a significant impact on the level of Heathrow’s price control,” CAA chief economist Andrew Walker said.
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