# UK’s Heathrow, airlines appeal regulator’s landing fee cut Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Heathrow Airlines Challenge Regulator's Landing Fee Cut Meta Description: Heathrow and its major carriers fight against a fee reduction, arguing it will hinder investment and maintain high costs for passengers in one of the URL: https://financedigest.com/uks-heathrow-airlines-appeal-regulators-landing-fee-cuthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-19t110314z2lynxmpej3i08xrtroptp4britain-heathrow-1736814122780-compressed.jpg) # UK’s Heathrow, airlines appeal regulator’s landing fee cut By Sarah Young LONDON (Reuters) -A cut to the fees Britain’s Heathrow can charge airlines faces separate appeals from the airport and two of its biggest carriers, British Airways and Virgin Atlantic. Britain’s busiest airport says that investment will be undermined without a rise in fees, while the airlines argue that even with the cut, the fees are still excessive and Heathrow remains one of the world’s most expensive hubs. Heathrow was told by the Civil Aviation Authority (CAA) in March that fees would need to fall during the 2024-26 period. Under the plan, Heathrow charges would drop to about 25.43 pounds per passenger in nominal terms over that period. But in the latest chapter in a years-long battle between the airport and its customers, airlines [say the CAA has not gone far enough](https://www.financedigest.com/ecb-must-swiftly-normalise-rates-neutral-may-not-be-enough-knot-says.html "ECB must swiftly normalise rates; neutral may not be enough, Knot says"). Both sides are appealing its decision. Britain’s Competition and [Markets Authority must now decide](https://www.financedigest.com/getting-out-of-the-static-curve-to-decide-the-growth-of-umbilical-cord-blood-banking-market.html "Getting Out Of The Static Curve To Decide The Growth Of Umbilical Cord Blood Banking Market") whether any of the appeals have grounds to proceed. Heathrow argues it needs higher fees to provide a good service, pay its shareholders [returns and fund investment](https://www.financedigest.com/ils-investment-returns-continue-to-outperform-according-to-aon-insurance-linked-securities-report.html "ILS investment returns continue to outperform, according to Aon insurance-linked securities report"). We believe the CAA has once again focused on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport [service and resilience consumers](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services") want,” it said in a statement. Virgin Atlantic said that the CAA calculations did not take account of a strong [recovery in travel](https://www.financedigest.com/europe-sees-travel-recovery-as-covid-restrictions-ease.html "Europe sees travel recovery as COVID restrictions ease") since the pandemic. The CAA decision contained multiple errors of fact and judgment, including pessimistic passenger [forecasts that ignore the strength of recovering demand,”](https://www.financedigest.com/novavax-cuts-full-year-revenue-forecast-again-amid-weak-demand.html "Novavax cuts full-year revenue forecast again amid weak demand") a Virgin spokesperson said. Heathrow is owned by Spain’s Ferrovial, Qatar [Investment Authority and other financial](https://www.financedigest.com/how-financial-services-leaders-can-prioritise-cybersecurity-investment.html "How financial services leaders can prioritise cybersecurity investment") investors. [Qatar is also the largest shareholder in BA-owner IAG through its Qatar Airways](https://www.financedigest.com/finnair-partners-with-qatar-airways-in-search-of-new-routes.html "Finnair partners with Qatar Airways in search of new routes") unit. (Reporting by Sarah Young; editing by William James and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---