Airlines Call for Urgent Reform of Heathrow’s Regulatory Model
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A coalition of airlines and airport sector companies has launched a campaign demanding an urgent review of Heathrow’s regulatory framework. The initiative, titled "Heathrow Reimagined: A Better Hub for Britain," is backed by the Heathrow Airline Operators’ Committee (AOC), Arora Group, International Airlines Group (IAG) (British Airways, Iberia, Aer Lingus, LEVEL, and Vueling), and Virgin Atlantic. The campaign aims to push for changes in airport fee oversight and overall management.
IAG airlines account for about 50% of Heathrow’s monthly seat capacity, while Virgin Atlantic alone represents nearly 10%.
Heathrow: The World’s Most Expensive Airport
According to the campaign, Heathrow has become the most expensive airport in the world, with fees that, if aligned with similarly sized European airports, would be £1.1 billion lower annually. Additionally, Heathrow has fallen out of Skytrax’s ranking of the world’s top 20 airports and has been labeled Europe’s most stressful airport in various surveys.
Regulatory Review Before Future Investments
The campaign's backers are urging the UK Civil Aviation Authority (CAA) to review Heathrow’s regulatory framework before any further expansion investments are made. However, they clarified that this review would not delay plans for a third runway, a controversial project in the UK.
"Heathrow is falling behind other major international hubs in terms of infrastructure and customer service while maintaining the dubious honor of being the most expensive airport in terms of fees. This cannot continue," said Nigel Wicking, CEO of Heathrow AOC.
Surinder Arora, founder and chairman of Arora Group, added: "Heathrow maintains a monopoly that directly impacts passengers. It not only charges excessive aviation fees but also imposes disproportionate parking and service charges, making it by far the most expensive airport in the world."
Airline Leaders Criticize Heathrow’s Costs and Service
The airline industry has strongly criticized Heathrow’s pricing model:
- Luis Gallego, CEO of IAG, stated: "As an international airline group, we compare the passenger experience at Heathrow with other airports, and the reality is that the service does not justify the price."
- Shai Weiss, CEO of Virgin Atlantic, emphasized: "The current regulatory structure is unfit for purpose and fails to effectively curb Heathrow’s dominant position. Despite having the world’s highest fees, Heathrow is failing consumers, airlines, and the UK economy, with aging facilities and a declining passenger experience. Urgent reform of the regulatory framework is needed."
Comparisons with Other Global Airports
The campaign highlights that leading airports such as Barcelona, Frankfurt, Madrid, and Munich have successfully expanded at significantly lower costs than Heathrow.
It also cites:
- Istanbul Airport, which was built to handle 200 million passengers with an investment of €12 billion.
- Singapore Changi, which is currently developing a new terminal and a third runway for £8 billion.
Call for Structural Reform
With the official launch of the campaign, airlines and industry stakeholders are now seeking to engage other aviation leaders and the UK government in discussions about Heathrow’s future.
According to "Heathrow Reimagined" backers, the goal is to establish a regulatory model that ensures fair pricing, efficient management, and infrastructure that reflects Heathrow’s critical role in the UK economy.
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