Heathrow owners divided about plan to raise £2.8bn by higher…

heathrow-owners-divided-about-plan-to-raise-2.8bn-by-higher…

Heathrow owners divided about plan to raise £2.8bn by higher…

Heathrow owners divided about plan to raise £2.8bn by higher charges (due to Covid losses)
2021-04-14 09:45:00
Heathrow is facing the spectre of a divided boardroom over its plan to raise billions of pounds from airlines and customers by increasing airport prices. State-backed Qatar Airways, whose owner is Heathrow’s 2nd-biggest shareholder, said Heathrow’s plans to recoup £2.8bn is “unreasonable, not in the consumer interest and should be rejected”. Qatar Airways’ boss, Akbar Al Baker, is a representative for the state of Qatar on Heathrow’s board of directors. Despite huge cuts in traffic, Heathrow claims it has enough cash reserves to cope with this year, even if there are low passenger numbers. There was recently a consultation about how much the CAA will let Heathrow charge airlines, in order to recoup cash lost due to the pandemic.  Heathrow has threatened legal action if the CAA does not allow this.  .Tweet   Heathrow risks boardroom split over plan to raise £2.8bn Qatar’s sovereign wealth fund, which owns the country’s airline, is also one of Heathrow’s biggest investors By Oliver Gill (Telegraph) 10 April 2021  Heathrow is facing the spectre of a divided boardroom over its plan to raise billions of pounds from airlines and customers by increasing airport prices. State-backed Qatar Airways, whose owner is also Heathrow’s second-biggest shareholder, said Heathrow’s plans to recoup £2.8bn is “unreasonable, not in the consumer interest and should be rejected”. The airline’s boss, Akbar Al Baker, is a representative for the state of Qatar on Heathrow’s board of directors. Heathrow said that the airline itself is not one of its shareholders. The airport has been hit hard by the pandemic with travel restrictions crippling its finances. However, its bosses have insisted that it holds sufficient cash reserves to see it through the rest of the year despite passenger numbers falling to levels last seen in the 1960s. Nonetheless, Heathrow claims it is entitled to recoup losses suffered because of the pandemic, and wants to adjust a complex regulatory framework accordingly. The demands have been rejected by the aviation regulator, the Civil Aviation Authority, but are subject to an industry consultation. Heathrow has threatened legal action if the watchdog does not back down. Industry sources said that the CAA, led by Richard Moriarty, met to finalise their decision on the matter in the middle of last week. An announcement is expected soon. Qatar Airways said: “Granting an increase now, will create the perception that the CAA is allowing HAL [Heathrow] to unfairly shift the risk created by the pandemic on to the consumer.” A spokesman for Heathrow said: “The [regulatory] adjustment that we’ve proposed lowers prices for consumers – without it, passengers will pay more and get less when travelling through the airport. “The devastating impacts of Covid-19 could never have been imagined. We’re simply asking the CAA to fulfil its duties and do the same. As evidenced by the submission, Qatar Airways is not a Heathrow shareholder.” https://www.telegraph.co.uk/business/2021/04/10/heathrow-risks-boardroom-split-plan-raise-28bn/ . See earlier: Heathrow adding a new £8.90 per passenger pandemic tax from April March 1, 2021 Heathrow has added a new charge on all outbound flights from April.  It will charge £8.90 extr

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