London Heathrow (LHR) will be allowed to increase landing charges from next year, the UK’s aviation regulator has said, in a move that is set to deepen the divide between the airport operator and its airlines.
The UK Civil Aviation Authority (CAA) has published its initial proposals for the next price control at Heathrow, which will come into force in summer 2022 and sets the maximum fees the airport can charge its airline customers for using the airport for the next five years.
The regulator has proposed that Heathrow will be able to increase charges per passenger from £22 ($30.42) to between £24.50 and £34.40. However, the CAA refused the airport’s request to nearly double its fees.
The CAA said it now would work with Heathrow, airlines, and other stakeholders to narrow this range over the next few months. Heathrow had requested to increase the cap on its charges per passenger to between £32 and £43, the authority added.
“We will test different scenarios with the industry, while continuing to monitor the sector’s recovery over the coming months,” a CAA statement said. “This means we will be able to hone our assumptions and narrow this range as we finalise the price control next year.”
In the meantime, an interim price control will come into effect from January 2022 and will remain in place until the final proposals have been implemented. Although subject to consultation, it will be about £30 per passenger.
The regulator acknowledged that it faces a balancing act of protecting passengers versus enabling the airport to invest following 20 months of disruption because of the pandemic.