LHR landing fees increase to cover runway cost

1 Jul 2014 by GrahamSmith

Heathrow is planning to raise landing fees if it gets the goahead to build a third runway, the airport's new CEO said today.

John Holland-Kaye said an increase in charges would be required to ensure LHR sees a return on the £17 billion it would cost to construct a new runway.

As such, Heathrow is proposing to raise the "aeronautical charge" from the current £20 per passenger to £24. These charges, which are regulated by the CAA, are usually passed on by airlines to the passengers.

Holland-Kaye told the Financial Times: "It is a real-term increase that we believe our passengers are prepared to pay in order to get to the global markets they need to get to."

A Heathrow spokeswoman told Buying Business Travel that the proposed increase in charges was part of its submission to the Airports Commission which is considering whether Heathrow or Gatwick should be allowed to expand.

Heathrow has said it would be able to open a third runway by 2026 if given the green light by the next government.

Airlines have consistently objected to any increase in charges at Heathrow because of their already high level.

The Airports Commission, chaired by Sir Howard Davies, is due to submit its final recommendations for airport expansion in summer 2015 after the next general election.

Heathrow has claimed in its submission that a third runway would add 40 new routes from the UK and cut average fares by £320 due to the competition created by the increase in capacity (see news, May 13).

Graham Smith

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