Heathrow airport will find out next month whether it can appeal a decision that it must reduce charges for airlines.
The airport wants a CAA cap on the amount airlines pay overridden, claiming it needs to invest. In February, the CAA told the airport average passenger charges, which are passed on to consumers in the fare paid, must be reduced from the current £31.57 to an average £27.49 until 2026.
Heathrow has asked the Competition and Markets Authority whether it can appeal the decision, arguing the CAA has failed to consider the impact of the pandemic on the airport. It said the CAA allowed “only an adjustment of £300 million” to take this into account. The airport believes an impact of £2.22 billion should be taken into consideration.
In turn British Airways, Delta and Virgin Atlantic, one of Heathrow’s most vocal critics, have asked the CMA to review the CAA’s decision, arguing it has allowed fees to rise too high and that Heathrow’s recovery has been rapid.
A Virgin Atlantic spokesperson said: “The CAA did not go far enough in its final determination, resulting in excessive Heathrow charges that expose a fundamentally broken regulatory framework.
“The CAA decision contained multiple errors of fact and judgement, including pessimistic passenger forecasts that ignore the strength of recovering demand. We have submitted our appeal so that consumers using the world’s most expensive airport will be protected. We’ll fully support the Competition and Markets Authority as it considers our case.”
A CMA spokesperson said: “The CMA will carefully consider the applications for permission to appeal and will provide an update by 16 May 2023.”