Heathrow ‘hits a new low’ in rip-off storm over long-running row on charges for travellers and airlines
Boss John Holland-Kaye said hub needs to hike charges
Remarks follow move by CAA to slash cap on average charge per passenger
Holland-Kaye wants CAA to reverse decision and allow it to levy higher fees
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Heathrow has been accused of ‘hitting a new low’ and trying to rip off travellers and airlines in a long-running row over charges.
Willie Walsh, the director general of the International Air Transport Association, lashed out at the UK’s flagship airport after its boss, John Holland-Kaye, said on a call with investors that the hub needs to hike charges in order to maintain an acceptable level of passenger service.
Holland-Kaye’s remarks follow a summer move by industry regulator the Civil Aviation Authority (CAA) to slash the cap on Heathrow’s average charge per passenger from £30.19 to £26.31 in 2026. Holland-Kaye wants the CAA to reverse its decision and allow it to levy higher fees.
Struggle: Heathrow is still reeling from Covid setbacks and travel disruption over recent months
But his stance has put him at loggerheads with Walsh – a former chief executive of British Airways’ owner IAG – along with other airline bosses.
‘Heathrow has hit a new low in hiding its incompetence,’ Walsh said this weekend.
‘It accused airlines of causing the summer travel fiasco for which it was responsible. And now it is blaming the CAA for seeing through its thinly veiled attempts to game the system and rip off passengers and airlines. If Heathrow had a mirror, the source of its problems would be clear.’ Heathrow has challenged the CAA over alleged ‘errors’ in its proposal to reduce the charge cap.
The airport is still reeling from Covid setbacks and travel disruption over recent months. It has amassed debt of £15billion after shareholders failed to provide any financial backing during the pandemic.
Holland-Kaye said last week that the CAA plan ‘really does not work,’ adding that it ‘does not generate enough cash and revenue for us to deliver the level of service that passengers expect.’ He said the CAA had ‘not got the balance right’ between airport and airlines.
Heathrow was at the forefront of the summer travel disruption and introduced a daily limit of 100,000 passengers due to staff shortages.
It has since suggested further restrictions on passenger numbers over Christmas, an idea which led to criticism from Virgin Atlantic.
The airline accused the airport of downplaying the recovery in travel in order to further its own agenda with the CAA.
The CAA said: ‘We believe our proposals to be in the best interest of consumers.’