3-Nov-2010 1:28 PM

Heathrow reviews airline charges

UK’s London Heathrow Airport is reviewing its airline charges as part of plans to make the airport more competitive against other European airports (The Financial Times, 31-Oct-2010). The airport stated overall revenue from airline fees will remain the same, but the structure is being adjusted to reflect environmental issues. Proposed changes include:

  • Minimum departure fees are reportedly to increase from GBP220 to GBP1000;
  • Aircraft emissions will account for 15% of landing charges, up from the current 10%;
  • Airlines operating quieter aircraft and handling transfer passengers will receive discounts;
  • Domestic charges to be increases from GBP13 to GBP20;
  • 25% reduction in fees for passengers ho arrive on one aircraft and leave on another within 24 hours;
  • Higher fees for airlines operating older aircraft or flying with empty seats.

British Airways responded stating it supports the objectives of the adjustments, but is concerned over the increase in domestic charges. BAA Commercial Director John Holland-Kaye responded stating it was up to airlines how they set their fares, but around 50% of domestic passengers usually transfer to other flights, qualifying those airlines for reduced transfer fees.

British Airways: “For example, we believe that the increase in passenger charges for domestic customers will result in a decline in passenger numbers from regional airports which is clearly not the objective of the regime change,” Spokesperson. Source: The Financial Times, 31-Oct-2010.

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