The Civil Aviation Association (CAA) have announced that they are planning to hike the cap on Heathrowโs average charge per passenger by up to 76%.
The current level is ยฃ19.60 to between ยฃ24.50 and ยฃ34.40 and IAG have warned that by raising the charges this โwill attract demand.โ
IAG chief executive Luis Gallego said Heathrowโs fees are already the among the highest in the world, which is now โbecoming more and more expensive.โ
Gallego said Heathrow provide the UKโs aviation sector with a โmajor advantage,โ but also warned โwe need to attract demand to stay competitive.โ
He told the Airlines 2021 conference in Westminster, โThe reality is that more than 40% of the people who use Heathrow are connecting passengers.
โThey are simply passing through on their way to other destinations and could easily go by other, more competitive hubs.
โHiking charges will not help. It will not attract demand โ it will have the opposite effect.
โIf the rise in landing charges goes ahead, I know IAG will not be alone in reconsidering our airlinesโ use of Heathrow.โ
Speaking at the same conference Tim Alderslade, chief executive of trade body Airlines UK, warned that Heathrowโs proposedย hike in fees will threaten the airports viability of their expansion project.
He warned, โTheir inability to keep their charges under control will be the death of runway three.
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