Heathrow Plans to Increase Airport Fees by 17% to Fund Expansion
Heathrow Airport is seeking to raise landing fees by 17% to invest £10bn in expanding its capacity, which airlines fear will lead to higher airfares for passengers. The proposal has sparked criticism from airlines, including British Airways and Virgin Atlantic, who argue that the increase is excessive and will burden passengers and airlines with additional costs.
Heathrow is planning to increase the landing fees it charges airlines by 17% to invest £10bn in Europe's busiest airport. This move is expected to raise air fares for travelers. The airport operator has submitted a proposal to the Civil Aviation Authority to raise fees, aiming to expand passenger capacity to 92 million annually and enhance terminal facilities. The average landing charge per passenger is set to rise to about £33.26 from the current £28.46 over the next five years.
Thomas Woldbye, Heathrow's CEO, mentioned that despite the fee increase, charges are still lower than a decade ago in real terms. However, International Airlines Group criticized the proposed hike as excessive, expressing concerns about affordability for passengers and airlines. Virgin Atlantic also questioned the value of the £10bn investment plan.
The plan does not include a proposal for a third runway but aims to add terminal space, increase passenger capacity, and enhance cargo facilities by 2031. Shareholders, including the French private equity group Ardian, will contribute £2bn towards the investment. Heathrow aims to demolish Terminal 1, expand Terminal 2, and build a new access tunnel to the central terminal area.
According to the source: The Guardian.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
