The regulator announced on Wednesday (8 March) it had set the amount the UK’s largest airport can charge airlines – a lower fee than the £31.57 interim price cap set in December following a consultation.
Virgin Atlantic boss Shai Weiss has nevertheless accused the CAA of failing to protect consumers as the costs are passed by airlines on to passengers through higher fares.
“Heathrow has abused its power throughout this process, peddling false narratives and flawed passenger forecasts in an attempt to win an economic argument,” Weiss said.
“This process has proven that the regulatory framework, including the formula used to set charges, is fundamentally broken. We’ll review our position carefully.”
Heathrow’s passenger fees have been the main cause of friction between the London hub and carriers over the past 18 months.
The airport has lobbied to increase the charges to between £32 and £43 per passenger, claiming the hike was needed to get back on its feet post-Covid.
Whereas, aviation bosses have repeatedly accused Heathrow of downplaying its recovery to get a more favourable deal out of the CAA.
Weiss’s words were echoed by chief executive of the Business Travel Association, Clive Wratten, who highlighted how Heathrow’s passenger costs have remained higher than “many other global hubs.”
“It is vital that Heathrow and the CAA work together to establish a financial balance that promotes efficiency, while remaining cost-effective for the traveller to avoid the stagnation of business travel,” Wratten added.
Which? Travel editor Rory Boland said the price was still too high, slamming the airport for "a summer blighted by poor service, last-minute cancellations and uncertainty for travellers".
"This year it should ensure it provides a reliable service, given the high fee it charges passengers," said Boland.
A CAA spokesperson told TTG the price cap represented "a good deal for consumers using Heathrow, while having regard for the airport’s need to efficiently finance its operations and be able to invest in improving services for the future”.
Heathrow has declined to comment further.
