CAA new 2-week consultation about keeping Heathrow charge at £31.57
The CAA sets the maximum level of passenger charges that Heathrow can charge, generally for a 5 year period. Heathrow had few passenger for two years, due to Covid and the CAA allowed them to raise their passenger charges, while passenger numbers remained low. However, the numbers are now rising, and may be high next year. Back in June, the CAA said the cap would fall from £30.19 then to £26.31 in 2026. When the effects of inflation are removed, that is a 6% reduction every year. Now the CAA has published an interim cap consultation (8th December – for 2 weeks), which raises the cap from £30.19 this year to £31.57. By contrast, the charge was £19.36 pre-pandemic. Airlines believe the higher level of cap is unjustifiable, as based on 2023 traffic forecasts that are too low. Heathrow wants the high charges, in order to recoup its vast debts, pay its shareholders their dividends, and also perhaps for future expansion. .Tweet Virgin Atlantic boss blasts CAA over Heathrow price cap By Robin Searle (Travel Weekly) December 08, 2022 Virgin Atlantic chief executive Shai Weiss has blasted the CAA’s published price cap for Heathrow airport, insisting the £31.57 cap is based on “undercooked and self-serving passenger forecasts”. The authority published an interim cap consultation on Thursday 8th, which raises the cap from £30.19 this year. The consultation will run for two weeks, to December 22. Earlier this year, the CAA published a five-year plan to lower the average charge per passenger at Heathrow to £26.31 by 2026 Virgin Atlantic argued the 2023 cap, which sets limits on fees the airport can charge airlines, is based on flawed projections which downplay a likely recovery. Weiss said: “It is unacceptable that the CAA has published a price cap for 2023 charges based on Heathrow’s undercooked and self-serving passenger forecasts, using airport projections that have proven to be completely flawed this year and are designed to achieve excess returns for its shareholders. “The regulator, whose primary duty is to protect consumers, is putting the interests of a monopolistic airport and its shareholders ahead of passengers, who have only recently been able to return to the skies freely and face significant cost-of-living pressures.” He added: “Strong and growing demand for travel means that the UK’s only hub airport, which is already Europe’s most expensive, is materially outperforming its own forecasts. “By maintaining a pessimistic outlook for 2023 passenger forecast
