Heathrow Airport tried to push charges up by 10% to which the Civil Aviation Authority (CAA) rejected and said that this is “disproportionate.”
The aiport are attempting to offset losses incurred due to the pandemic and asked to increase charges to recover around £2.6bn.
The CAA regulates what Heathrow are allowed to charge airlines, who then pass the fees on to passengers.
The CAA instead allowed an increase of £300m in the airport’s regulated asset base, to “incentivise Heathrow Airport Limited to plan effectively, reopen its terminals in a timely way for a summer recovery.”
However, British Airlines owner IAG do not back the move and have warned the CAA´s decision to grant an increase “will unfairly penalise consumers.”
The International Air Transport Association (IATA) director Willie Walsh and the former chief of IAG, said the CAA had “caved to pressure from Heathrow” and warned consumers will end up “paying millions more” to fly.
Walsh added, “This is the time when everyone in aviation should be pulling together to reduce costs and rebuild an important sector of the economy, not seeking to cover losses on the tab of its customers.
“Irrespective of our next steps to counter the damage of this decision, we do agree with the finding of the CAA that Heathrow must invest in better services for airlines and travellers.”