CAA allows Heathrow to increase passenger charge from £22 to…

caa-allows-heathrow-to-increase-passenger-charge-from-22-to…

CAA allows Heathrow to increase passenger charge from £22 to…

CAA allows Heathrow to increase passenger charge from £22 to £31.19 from January – to be reviewed again
2021-12-15 11:47:00
The UK Civil Aviation Authority (CAA) has allowed Heathrow to charge its airline customers more in the period from 1 January 2022, as an interim measure, for six months. Heathrow’s current price control expires on 31 December 2021 and the final decision and licence modifications for a new 5-year control period (H7) will not be made and take effect until the summer of 2022. At present the airport can charge up to £22 per passenger, and it wanted to increase that to £43 in January 2022.   The CAA now says Heathrow can charge £30.19 per passenger.  The CAA says: “Once we have set the final price control for the H7 period, any difference between it and the holding price cap will be trued up or down.” The rise to £31.19 is an increase of 37%, compared to the current inflation rate of 5.1%.  Shareholders have received more than £4bn in dividends since 2012.  Airlines are deeply opposed.  .Tweet   UK Civil Aviation Authority statement on Heathrow Airport interim price cap The UK Civil Aviation Authority (CAA) has today written to Heathrow Airport Limited (HAL) confirming the interim, holding price cap that the airport can charge its airline customers in the period from 1 January 2022. 16 December, 2021 The UK Civil Aviation Authority (CAA) has today written to Heathrow Airport Limited (HAL) confirming the interim, holding price cap that the airport can charge its airline customers in the period from 1 January 2022. As HAL’s current price control expires on 31 December 2021 and the final decision and licence modifications for a new five-year control period (H7) will not be made and take effect until the summer of 2022, the CAA is introducing this interim measure to protect the interests of consumers in the period until the H7 licence modifications take effect. The charge will be £29.50 per passenger in 2020 prices. This value is in line with our consultation and reflects the uncertainty of the recovery of passenger volumes at the airport from the pandemic, particularly following the emergence of new information about the omicron variant of Covid-19 since the end of the consultation period. This charge will be adjusted from 2020 prices to 2022 prices to adjust for inflation, which leads to a charge of £30.19. Once we have set the final price control for the H7 period, any difference between it and the holding price cap will be trued up or down. We will publish our decision document setting out our rationale in further detail before Christmas. The licence condition that implements the holding cap constrains HAL’s prices from the start of January, but the formal licence modification will not take effect until the end of January 2022. Notes to editors Link to Civil Aviation Authority l

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