Heathrow's airlines have united to demand an immediate review of the airport's regulatory framework, citing escalating passenger fees and a decline in service quality.
Virgin Atlantic, IAG, and Heathrow AOC, which represents the interests of the airport's carriers, called on the aviation regulator this Monday for a "fundamental review" of the current system, which they claim is "not fit for purpose," as reported by .
They were supported by Surinder Arora, the billionaire hotelier and chair of the Arora Group.
The newly formed alliance is pushing for reforms to be put in place ahead of any investment in expansion projects, yet without stalling the progress of a third runway.
This move comes amidst a prolonged and heated dispute between the º£½ÇÊÓƵ's leading airport and its airlines regarding the level of passenger charges set by the hub.
The airlines contend that Heathrow's monopoly, where it operates all terminals exclusively, has resulted in wasteful expenditure and decisions that do not align with the best interests of its customers and airline partners.
Over the past 15 years, Heathrow has become the most expensive airport globally, even as concerns about customer satisfaction and infrastructure quality mount.
According to the campaign group, passengers are now paying £1.1 billion more in fees than they would at comparable European airports. Speculation around the much-delayed third runway at Heathrow has intensified worries about how the costly initiative will be financed.
"The current regulatory model at London Heathrow is simply not fit for purpose and does not sufficiently constrain Heathrow’s monopoly power," said Shai Weiss, CEO of Virgin Atlantic.
"Despite having the highest passenger charges in the world, Heathrow is failing consumers, airlines and the º£½ÇÊÓƵ economy, with ageing facilities and a declining customer experience."
Luis Gallego, CEO of IAG, added: "As an international airline group, we compare the experience for passengers at Heathrow with other airports, and the experience does not match the cost."
"We would like to work with the industry, the Government and the CAA and recommend an urgent review into the regulatory system at Heathrow, to improve the affordability and experience for travellers, so that it can become a leading global airport once again."
However, a source from Heathrow argued that it made "little sense to suggest that passengers will have new runways and terminal buildings for free as they will require investments over and above current regular investment levels."
The source also mentioned that the airport management had "already told airlines and government that it would propose to look at a different, longer-term regulatory model for the third runway if an application is submitted."
"Heathrow is keen to run a transparent process and work in partnership with airlines, the regulator and Ministers to put in place a model that delivers the benefits of expansion for the º£½ÇÊÓƵ as quickly as possible – including the lower airfares that consumers can expect as a result of new capacity being unlocked."
