Heathrow airline fees row set to roll on longer

The Competition and Markets Authority, which is investigating the issue, has given Heathrow and airlines longer to make submissions of evidence. A deadline of 22 August has now been extended until 17 October.

Heathrow approached the CMA to ask whether it could appeal a CAA decision about how much airlines pay to use the airport. Heathrow wants a CAA cap overridden to invest and to help recoup Covid losses.

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 argues 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.

The issue is important because fees are always passed on to passengers in ticket prices.
 
British Airways, Virgin Atlantic and Delta also 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.

The CMA said it “had regard to the number of appeals brought, the scope and complexity of the appeals including the number of grounds raised and the number of parties concerned, as well as the necessity to allow sufficient time to take full and proper account of all evidence received from the appellants, respondent and any interveners.”

It added it was satisfied “that there are good reasons for extending the period of time within which the CMA must determine the appeals”. 

The CAA has been given a separate deadline of 31 May.