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Virgin baffled by Heathrow decision

Friday, 10 January 20143 min read

Virgin is considering an appeal against the decision by the CAA over airport charges.

CEO Craig Kreeger says the airline was "baffled" at the CAA’s decision in October to increase the Heathrow settlement from its original recommendation.

"Today’s decision is a far cry from the reduction needed to mitigate the incredibly steep price rises customers have seen in Heathrow airport charges in the last few years," he said. ‘¨

"Prices at Heathrow are already triple the level they were 10 years ago, and coupled with ever increasing Air Passenger Duty, customers flying to and from the UK are facing some of the highest travelling charges in the world.

"Virgin Atlantic is totally committed to improving the passenger experience at Heathrow, but we believe this could have been achieved with a more significant reduction in charges."

"We will be carefully considering our right to appeal on behalf of our passengers who will ultimately pay the price for the CAA’s decision."

Virgin also accused the CAA of not going far enough with its regulation at London Gatwick.

The CAA has based regulation on the airport operator’s own commitments to its airline customers, but is backing the commitments with a licence, to allow the CAA to step in to protect users if there are reductions in service quality that are against the passenger interest.

"We hope the CAA will properly hold Gatwick Airport and its shareholders to account in order to improve its price offer to its airline customers," said Kreeger.

"If it fails to do so, coupled with looser regulatory controls, we are concerned that the CAA is failing in its statutory obligation to protect passenger interests, and will consider our right to appeal on their behalf."