Heathrow told to scrap demand to double landing fees by Virgin Atlantic boss

Airport failed in its attempt to raise fees by 120%

A Virgin Atlantic plane takes off from Heathrow in west London. The airline has accused the hub of being a 'de facto monopolistic airport'. PA

Virgin Atlantic’s boss has vowed to work with other airlines and the International Air Transport Association (Iata) to fight Heathrow Airport’s bid to raise landing fees by 120 per cent, which he called an “abuse of power”.

Shai Weiss said the west London hub appeared to be operating as a “de facto monopolistic airport” as it sought to recuperate huge Covid-19 losses by charging carriers more per passenger.

In a speech at the Airlines 2022 conference in London on Monday, Mr Weiss was applauded by delegates as he called out Heathrow’s attempt to increase landing fees.

“Last year, already the most expensive airport in the world asked the CAA regulator [Civil Aviation Authority] for a 120 per cent price hike in per passenger charges,” he said. “Great for the airport and its mostly foreign shareholders but a bad deal for consumers, airlines and the UK economy.

“If we want a globally competitive aviation sector, that should simply not be allowed to happen,” he said.

“Together with British Airways, Iata and the wider airline community, we have fought long and hard to ensure the CAA uses its powers to ensure this would not happen and encourage the UK government to play closer attention to the abuse of power by a de facto monopolistic airport.”

The airport last year lost its bid to raise charges to its proposed level. Instead, the CAA gave permission in December 2021 for an increase from £19.60 to £30.19 for summer this year.

In June, the CAA ordered the airport to slash passenger charges each year until 2026.

The current fee per passenger at Heathrow is £30.19. The CAA has said this will fall to £26.31 by 2026 but the airport had been calling for an increase to £41.95.

Mr Weiss also urged the CAA to block Heathrow from imposing caps on the number of passengers that airlines can serve at the hub.

During the summer, the airport sparked a row with airlines over its decision to introduce a daily limit of 100,000 customers as it grappled with staff shortages.

Travel chaos at Heathrow - in pictures

Long queues, cancellations and luggage problems have plagued Heathrow Airport since the travel sector’s comeback from coronavirus restrictions. Bloomberg

The airport has struggled to cope with a volume of more than 100,000 departing passengers a day, with bags arriving late, queues snaking through terminals and flights being cancelled at the 11th hour. Reuters

Travelling through Heathrow has been a dire experience for some of late. AP

Suitcases uncollected at Heathrow's Terminal 3 baggage reclaim. AFP

There is a shortage of staff after many people were laid off during the pandemic. AP

Heathrow rejects the accusation of having failed to prepare, saying it started recruiting extra staff last November. AP

Baggage piles up outside Terminal 2 at Heathrow in June. Baggage issues have bedevilled the airport, with a combination of staff shortages and malfunctioning automated baggage handling systems contributing to the mayhem. Reuters

One traveller shows his disappointment while waiting in a long queue to pass through a security check in June. Getty Images

Passengers queue to check in at Terminal 5. Bloomberg

A queue snakes through the airport. Getty Images

A waiting passenger decides to get some sleep in Terminal 5. Reuters

Long queues form through a terminal. PA

A crowded check in area in Terminal 2 in April. Heathrow rejects the accusation of having failed to prepare, saying it started recruiting months ago. PA

A dejected looking passenger queues for check-in ahead of the Easter Bank Holiday weekend at Heathrow in April. Reuters

People queuing to go through security at Heathrow. PA

Queues at arrivals in Heathrow in March. Photo: Sven Kili / Twitter

Last month, Heathrow warned that it may reintroduce similar limits “on a small number of peak days in the lead-up to Christmas” to avoid travel chaos. It later ruled out caps over the festive season.

Mr Weiss insisted the airport must operate to full capacity as the aviation sector seeks to recover from the Covid-19 pandemic.

“This is not about just the next flight price control in four years’ time,” he told the conference.

“Everyone in this room will recognise the damage to consumer confidence that summer disruption caused. A repeat of this summer in 2023 is completely avoidable if honest and accurate passenger forecasts are used now for resource planning and building resilience.

“Heathrow is once again Europe's busiest airport, returning demand — whether it's Thanksgiving and Christmas or Easter 2023 — should come as no surprise and the CAA must not allow our hub airport to sleepwalk into another entirely avoidable period of disruption.”

The Virgin Atlantic boss said Heathrow must be “responsive and accountable to its customers” and “cannot be allowed to unilaterally restrict capacity”.

“We are ready to fly our programme and so should Heathrow,” he added.

Mr Weiss went on to thank the CAA for its “constructive engagement on Heathrow”. But he said the regulatory framework around the UK’s largest airport was "simply not working”.

“It is broken and must be reformed” and a new system should be ushered in to better balance the interests between shareholders and consumers, he said.