- Heathrow passengers face decades of higher fares after the airport was given permission to recover early costs from developing its expansion plan.
- The CAA announced it had permitted Heathrow Airport Limited (HAL) to recoup £320m spent on its proposal to build a third runway since the start of last year.
- The CAA said its decision would increase the maximum airport charge per passenger by about 15p in 2028, rising to an estimated 30p in subsequent years.
- Plans for a third runway at Heathrow stretch back decades, with the government backing the plans in 2003.
- The CAA stated that it will recover the money through higher airline charges, which are typically passed on to passengers in air fares, for about 20-25 years.
Heathrow Airport has been authorized by the Civil Aviation Authority (CAA) to recover £320 million spent on its third runway project through increased airport charges. This decision will lead to a rise in the maximum airport charge per passenger by approximately 15p in 2028, escalating to an estimated 30p in subsequent years.4
The CAA's approval means that airlines will pass these costs onto travelers, impacting airfares for the next 20-25 years. Tim Johnson, the CAA's director of consumers and markets, stated, “Our decision strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst protecting them from undue increases in costs.”
British Airways has expressed concerns that early cost recovery could make expansion “unaffordable for consumers”, raising questions about the project's overall benefits. A Heathrow spokesperson emphasized that the project aims to make travel more affordable and enhance passenger choice, while also providing a significant economic boost across the UK.
The government anticipates a planning decision by 2029, with plans for the third runway dating back to 2003. The CAA's decision reflects a long-term strategy to manage airport capacity and improve service, despite the immediate financial implications for travelers.
“The Civil Aviation Authority (CAA) stated that the maximum airport charge per passenger will increase by about 15p in 2028, potentially rising to 30p in subsequent years. Tim Johnson, the CAA's director, emphasized that this decision aims to balance consumer benefits with cost protection.”
The Guardian
BBC
