Airlines speak out against CAA rise at Heathrow
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Bosses at Virgin Atlantic and British Airways have voiced their concern into the potential rising costs at Heathrow outlined by the Civil Aviation Authority (CAA).
New capping charges at the airport could raise airline costs by GBP600 million with estimates of RPI minus 9.8% so charges do not affect Heathrow’s growth plans.
The airlines have now called for the CAA to review the proposed fees in their response to its suggestions.
“In the current economic climate, businesses across the public and private sector are making tough choices and delivering on reduced resource,” said Craig Kreeger, chief executive of Virgin Atlantic.
“Rather than protect airports from this, it is the CAA’s responsibility to ensure Heathrow’s behaviour reflects the commercial reality of the sector and wider economy,” he added.
BA’s chief executive Keith Williams said the charges, on top of its 300% increases in 11 years, had made Heathrow the “most of expensive hub airport in the world”.
“As they stand the CAA’s proposals take an airport that is currently over-priced, over-rewarded and inefficient and allow it to remain that way for the next five years with ever increasing fees,” he said.
“The CAA has a new primary duty to further the interests of customers and a secondary duty to promote economy and efficiency on the part of the airport operator. We hope the CAA will meet these statutory obligations and reconsider its initial proposals as a matter of urgency,” added Williams.
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