Airlines UK response to proposed Heathrow passenger charge increases

Great British Rip-Off: Airlines issue stark warning to regulator that Heathrow already charges more per passenger than every other major airport in the world and allowing its sky-high fees to take-off again will hike its fares to double that of Charles de Gaulle in Paris, hurting customers and UK’s economic recovery 

• UK’s airport regulator, the Civil Aviation Authority (CAA), is deciding whether to allow Heathrow to charge up to £30 per passenger to use its airport from January next year – with the potential to increase again in the summer

• Heathrow had asked for almost £45 per passenger
• Airport is already one of the most expensive in the world and its greed could divert tourists and investors to other European hubs – channelling money away from the UK

It’s already the most expensive airport anywhere in Europe yet the Civil Aviation Authority (CAA) is contemplating just how much Heathrow should be allowed to increase its charges per passenger, with the fee set to rise from around £19 this year to £30 from January 2022, and the potential for this fee to rise further.

Last month the regulator ruled out the doubling of charges proposed by the airport, but said Heathrow could still be allowed to increase charges to £30 per passenger at the start of the year and up to £34.40 from next summer, a staggering 75% increase on today’s rates.

It means the cost of travel for passengers could rise with airlines unable to absorb the entirety of the charges. The charge per passenger is based on the airport’s prediction of the cost of what a passenger uses during their journey, including airport security, water and energy costs, etc.

While airlines have tapped investors rather than customers for loans to help them survive the global pandemic, Heathrow has taken a very different approach – charging higher passenger fees for trips being taken now, to cover the cost of flights that weren’t taken during the crisis, and borrowing more money that it expects customers to pay back through this increased charge.

Heathrow’s charges are already the highest in the world. This latest hike would come at a time when Heathrow’s international competitiveness has seen it fall to the sixth busiest airport in the world, behind the likes of Paris, Amsterdam and Frankfurt.

And while fees charges by its European competitors’ have mostly remained flat or fallen, Heathrow has chosen to inflate the fees it charges so that next year it is likely to be more than twice as expensive as some other hubs.

*Source: Today’s charge per passenger: Jacobs Review of Airport Charges 2020; Proposed 2022 charge per passenger: Airlines UK analysis of current charges consultations at European airports

Today’s charge per customer
*Source: Jacobs Review of Airport Charges 2020

2022 charge per customer
*Source: Airlines UK analysis of current charges consultations at European airports

Heathrow’s proposed increase would be the highest in Europe, putting its fees well above all other major airports and risking more traffic moving to European competitor hubs with the UK’s slump down the league table becoming permanent.

Commenting on the proposed increase in charges, Tim Alderslade, Airlines UK CEO, said:

 “It’s crazy that at a time when the travel industry needs holidaymakers to return to the skies, the UK’s biggest airport is hellbent on trying to price them out, penalising them for not travelling during the pandemic by adding an over-inflated premium to their tickets rather than turning to its shareholders or taking out loans, like the rest of the industry.

 “Aviation is vital to support the UK’s economic recovery, but this move will only drive business and jobs elsewhere in Europe. We know the CAA prides itself on protecting consumers and we urge it to do just that and reverse this dramatic rise in charges from a monopoly-abusing hub airport.”

 At a Transport Select Committee hearing on Wednesday, Willie Walsh, Director General of IATA, warned that if the CAA allows Heathrow’s new charges to be taken forward; “It will just price the UK out of business completely”, and suggested that consumer interests “are not protected” under the airport’s proposals.

Airlines respond to the changes to Air Passenger Duty

Commenting on the changes to Air Passenger Duty announced today by the Chancellor of the Exchequer, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“Reducing the rate of domestic APD will correct an anomaly that has existed for too long and greatly enhance connectivity to and between all the regions of the UK, supporting route viability and enabling businesses and sectors across the economy to access markets, attract inward investment and support our tourism industry.  

“For many people and companies wanting to do business in the UK or see family and friends – particularly across Scotland and Northern Ireland – travelling by air remains the only viable option. This will make a tangible difference to their lives, providing more choice and frequency for consumers, and bringing all parts of the country closer together.

“But we’re still the most taxed airline sector in the world and as we recover from the pandemic, we’re being burdened with a new, uncompetitive ultra-long-haul APD hike. While APD was initially introduced as a “green levy”, not a penny has ever been used for environmental purposes and increases will only hinder UK aviation’s ability to invest in decarbonisation.

“This will also impact the UK´s economic recovery, consumers and jobs. Given the acute pressure on business, the hike in international APD will make it even harder for UK companies to trade in some key overseas markets. This is ultimately a tax on Global Britain.”

Airlines comment on the announcement by the Civil Aviation Authority on Heathrow passenger charges

Commenting on the announcement this morning by the Civil Aviation Authority on Heathrow passenger charges, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“The CAA is our last line of defence against a monopoly-abusing hub airport. Monopolies will always try it on and that’s why we need a strong regulator to clamp down on what is blatant gouging. How on earth can it be in the interests of consumers to ramp up charges by as much as 50%?

“Passengers need to be front and centre here – it’s Heathrow’s shareholders and not our customers who should be asked to foot the bill. We will oppose this in the strongest terms.”

Airlines respond to PCR test removal date for vaccinated passengers

Commenting on the announcement that PCR tests will be removed for vaccinated passengers returning to the UK from 24 October, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“This is great news and we’re pleased to get it over the line in time for the crucial half-term period, which will be a massive relief to families desperate to get away this autumn. Vaccinated passengers can be reassured that they do not need to book or take an expensive PCR test when they return to the UK, which will further reduce the cost of travel.  

“It adds to the positive news from last week with the substantial reduction of the red list and announcement of further mutual recognition of vaccines, and taken together this is a major step forward that will support the desperately needed recovery of our sector.”

Airlines UK response to latest Red list update

Commenting on the latest Red list update, Airlines UK, the industry body representing UK-registered carriers, said:

“We welcome the significant reduction of the Red list as another positive step towards normalising air travel and reopening our sector. This builds on recent changes that have seen travel to many more countries become easier and cheaper for passengers, progress we hope towards removing all test requirements for the fully vaccinated as soon as possible.

However, it is disappointing for our customers to have no definitive clarity yet on when the lateral flow changes will be introduced. With the crucial October half-term just two weeks away we urgently need clarity so that passengers can plan ahead. This is the key booking period between now and Christmas, so time is of the essence.”

UK Airlines respond to the reopening of international travel to the United States for vaccinated UK citizens – “This is a major breakthrough which coupled with the removal of travel restrictions announced last week represents a substantial reopening of UK aviation”

Commenting on the reopening of international travel to the United States for vaccinated UK citizens, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“This is a major breakthrough which coupled with the removal of travel restrictions announced last week represents a substantial reopening of UK aviation. The US is one of our most important markets and the air corridor is worth billions of pounds a year in trade and tourism – safeguarding thousands of jobs. Things are moving in the right direction and Ministers deserve credit for getting us to this point. We look forward to seeing the full details so airlines can support seamless implementation in November.

“Obviously, there is more to be done – including the relaxation in due course of restrictions for unvaccinated passengers – but for now there is light at the end of the tunnel following 18 months of unprecedented uncertainty.”

Airlines UK Respond to Changes to Foreign Travel Restrictions

Commenting on the Government announcement on international travel, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“This is a positive step which moves us much closer to the reopening of UK aviation and provides greater reassurance to passengers desperate to travel. By reducing the number of red list destinations and scrapping PCR testing, Ministers have paved the way for people to get away this October half-term and into the winter following 18 months of uncertainty. It will provide a real shot in the arm for a sector that until now has not been allowed to trade properly. 

“That said, the insistence on keeping Day 2 testing still leaves us as an outlier across Europe, given most EU countries long ago removed this as a requirement for vaccinated passengers, and it is unclear why the UK has chosen to remain a special case. Until all restrictions are removed for the fully vaccinated the recovery can never be complete. But this is an excellent step forward.”

Airlines UK response to latest country list update

Commenting on the latest country list update, Airlines UK, the industry body representing UK-registered carriers, said:

“This cycle needs to change. Despite nearly 80% of over 16s being fully vaccinated the UK remains an outlier, with only a small number of ‘green’ destinations making international travel from the UK more expensive, burdensome and uncertain compared to our neighbours despite most travel abroad being no riskier than our unrestricted travel within the UK. Too many families are having to look over their shoulders for rule changes, and pay through the nose for tests – with no sign from Government that this will change. 

As has already happened across Europe, it’s time for a more proportionate system where tests are dropped for the fully vaccinated and from destinations where Covid risks are low, with tougher measures targeted at a small number of high risk countries.”