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PRIVACY
Enterprise

Virgin Atlantic, IAG demand urgent review of Heathrow's monopoly pricing

Heathrow's largest airline customers have called for a fundamental review of the º£½ÇÊÓÆµ's biggest airport's regulatory model after it announced plans to hike landing charges by more than 17 per cent

A general image of Heathrow Airport(Image: Get Surrey)

Plans for a significant increase in landing charges at Heathrow Airport have sparked outrage from its largest airline stakeholders, British Airways and Virgin Atlantic.

The º£½ÇÊÓÆµ's premier airport announced on Friday its plans to raise the fee it charges airlines for using its runways by 17 per cent, a move that is likely to result in higher ticket prices, as reported by .

Over the next five years, average landing charges are projected to rise to approximately £33.26 per passenger, up from £28.46.

This comes as part of broader plans for £10bn in private investment over the next half decade, as the West London airport aims to accommodate an additional 10m passengers by 2031.

Heathrow has submitted its proposals to the Civil Aviation Authority (CAA) which would increase annual passenger capacity to 92m while expanding existing terminal space for new shops, lounges and restaurants.

Virgin Atlantic expressed its agreement with Heathrow's need to enhance customer experience but criticised the proposed investment plan. "However, only Heathrow with its monopoly power as the º£½ÇÊÓÆµ's only hub airport would think that this £10bn investment plan represents value for money and that's before any third runway expansion costs are factored into the equation.

"Heathrow says that its shareholders will contribute £2bn equity but it is ultimately consumers and airlines that pay the bill," added a spokesperson for the airline, which is part of a consortium advocating for a regulatory overhaul at the airport.

"Heathrow is already the most expensive airport in the world and this proposal demonstrates Heathrow's inability to invest capital wisely and efficiently. Therefore, we continue to call on the CAA to undertake an urgent fundamental review of Heathrow's economic regulatory model, which is simply not fit for purpose."