The largest airport in the United Kingdom wants to compensate for the loss of earnings due to the corona pandemic with higher fees. At the first attempt, the British Civil Aviation Authority did not approve the planned extent. It got more expensive anyway - to the annoyance of British Airways and Virgin Atlantic.
The two top dogs continue to oppose the price increases and threaten to reduce their presence at Heathrow again and again. However, the actual relocation on a large scale has not yet taken place. It's not that easy, because this airport acts as the main hub for British Airways.
So it is not surprising that ex-IAG boss Willie Walsh rumbles against the management of Heathrow Airport in his new role as IATA President. In an open letter he accuses “greed” and “return to old tricks”. It is requested that the fees be reduced and not increased.
Heathrow Airport sees the matter completely differently, because in November 2021, for example, the volume was around 60 percent below that of November 2019. The comparatively restrictive entry and quarantine regulations of the United Kingdom, which often change with minimal lead time, are also responsible . According to its own information, Heathrow has produced losses of £ 3,4 billion since the beginning of the corona pandemic.
The airlines are angry that the UK's largest airport also stresses that they have cash reserves of 4,1 billion pounds at their disposal. On the other hand, there are debts of 15,4 billion pounds. Interest has to be paid for these, which ultimately makes the airport more expensive.
This wants to counteract this with fee increases and wanted to raise a passenger fee of 43 pounds per passenger. That was too much for the British CAA and they granted a maximum of £ 30. The charges are to increase gradually from £ 20 to £ 30 per passenger. The airlines criticize that it is still a 50 percent increase and that it is becoming more and more difficult to offer competitive prices. Stansted, Luton, Southend and Gatwick airports are considered cheaper. Even London City Airport, which is the epitome of the expensive airport, is cheaper during off-peak times.