CMA upholds CAA cut to Heathrow’s landing fees
The UK competition watchdog, the Competition and Markets Authority (CMA), has provisionally upheld a ruling to force Heathrow to cut its landing fees in a long-running dispute between airlines and the airport. The Civil Aviation Authority (CAA), the industry regulator, in March ordered the airport to cut its charges to airlines from £31.57 per passenger to £25.43 from next year. Both sides lodged appeals with the CMA, as Heathrow wanted there to be no cut and airlines wanted a larger cut. The CMA’s recent provisional ruling found “the CAA was not wrong in most of [its] decisions”. It noted that the CAA was “wrong in relation to one small element” of the calculation it made for an allowance for exceptional events that might reduce passenger numbers, and it had not fully taken into account the impact of Covid on air travel demand. But the CMA said these were expected to have “only a small net impact” on the level of the charges. The CMA will make its final ruling on October 17th. . Tweet UK competition watchdog upholds cut to Heathrow’s landing fees Airport and airlines had appealed against ruling by Civil Aviation Authority in March that charges should fall by a fifth By Leke Oso Alabi in London (FT) SEPTEMBER 8 2023 The UK competition watchdog has provisionally upheld a ruling to force Heathrow to cut its landing fees in a long-running dispute between airlines and the owner of the country’s biggest airport. The Civil Aviation Authority, the industry regulator, in March ordered the airport to the west of London to reduce its charges to airlines by almost a fifth from £31.57 per passenger to £25.43 from next year. But both sides lodged appeals with the Competition and Markets Authority against the decision with Heathrow arguing it should be allowed to increase its fees, or risk investment at the airport, and airlines wanting a further cut. In its provisional ruling on Friday, the competition watchdog found “the CAA was not wrong in most of [its] decisions”. Heathrow and some of its biggest airline customers, including British Airways and Virgin Atlantic, have been at loggerheads over whether the airport should be allowed to increase its fees following the pandemic, which hit the aviation industry hard. The charges are typically passed straight on to passengers through ticket prices. In its findings, the CMA noted that the CAA was “wrong in relation to one small element” of the calculation it made for an allowance for exceptional events that
