The move by the Civil Aviation Authority is causing a blow to the airport, which had argued for higher fares to help protect customer service as the travel industry recovers from the pandemic. The regulator said the average maximum price per passenger paid by airlines in Heathrow would fall from 30 30.19 now to, 26.31 in 2026. Excluding the effects of inflation, this equates to a reduction of almost 6% each time until then. The CAA said its final proposals would “be in the best interests of consumers”. It is consulting and will announce its final decision within the year. In a bitter dispute, airlines had pushed for a reduction in landing fees, with Heathrow arguing that this would affect customer service. The CAA said the two sides had “completely differing views on the level of fees for the next five years”. Airport CEO John Holland-Kaye said: “The CAA continues to underestimate what is needed to provide good passenger service, both in terms of the required level of investment and operating costs and the fair incentive required for individuals. investors to finance the. “Without corrections, these elements of the CAA proposal will result in passengers having a worse experience at Heathrow as investment in the service runs out.” Subscribe to the Business Email daily email or follow the Guardian Business on Twitter at @BusinessDesk The landing fee ceiling was £ 22 per customer in 2020, but increased to more than £ 30 in January. Richard Moriarty, CEO of CAA, said: “Today’s announcement is about doing the right thing for consumers. We listened very carefully to both Heathrow Airport and airlines that have differing views on the future level of charges. “Our independent and impartial analysis balances affordable consumer charges, while allowing Heathrow to make the investment it needs for the future.” The CAA said increased travel demand is expected to lead to a steady recovery in aviation over the next four years, with “sharp increases” in spring travel following easing of restrictions on UK and international travel. The number of passengers in May was 79% of pre-pandemic levels. However, uncertainties remain next year and the number of passengers in Heathrow is not expected to return to 2019 levels at least until 2025.
