The UK Civil Aviation Authority said the average fee per passenger at London’s Heathrow Airport must be reduced rather than raised, as the airport had planned. Heathrow CEO John Holland-Kaye said the CAA “continues to underestimate what it takes to deliver a good passenger service.”
Heathrow had hoped to raise the current rate of £30.19 ($47.38) to £41.95 ($65.84).
Instead the rate will now decrease to £26.31 ($41.29) by 2026.
According to the CAA the reduction is justified by the resurgence in air travel “as the recovery continues” while it still enables the airport to fund improvements.
“We have listened very carefully to both Heathrow and the airlines who have differing views to each other about the future level of charges,” CAA chief Richard Moriarty said.
“Our independent analysis balances affordable charges for consumers, while allowing Heathrow to make the investment needed.”
It would still allow for £3.6 ($5.65) billion investment by Heathrow, Moriarty told the BBC
“When it comes to disruption, everyone in aviation wants to avoid the scenes that we’ve seen over the last couple of months.”
Holland-Kaye said, “Uncorrected, these elements of the CAA’s proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up.”