The Civil Aviation Association (CAA) have announced that they are planning to hike the cap on Heathrow’s average charge per passenger by up to 76%.
The current level is £19.60 to between £24.50 and £34.40 and IAG have warned that by raising the charges this “will attract demand.”
IAG chief executive Luis Gallego said Heathrow’s fees are already the among the highest in the world, which is now “becoming more and more expensive.”
Gallego said Heathrow provide the UK’s aviation sector with a “major advantage,” but also warned “we need to attract demand to stay competitive.”
He told the Airlines 2021 conference in Westminster, “The reality is that more than 40% of the people who use Heathrow are connecting passengers.
“They are simply passing through on their way to other destinations and could easily go by other, more competitive hubs.
“Hiking charges will not help. It will not attract demand – it will have the opposite effect.
“If the rise in landing charges goes ahead, I know IAG will not be alone in reconsidering our airlines’ use of Heathrow.”
Speaking at the same conference Tim Alderslade, chief executive of trade body Airlines UK, warned that Heathrow’s proposed hike in fees will threaten the airports viability of their expansion project.
He warned, “Their inability to keep their charges under control will be the death of runway three.