Heathrow Airport, Britain’s busiest hub, said on Wednesday it had launched an appeal against a ruling by the airport regulator that it must cut the fees it charges airlines between 2024-2026.
The Competition and Markets Authority, Britain’s competition watchdog, will now decide whether the appeal has grounds to go ahead, the latest development in a bitter and long-running row between the airport and its biggest airlines IAG-owned British Airways and Virgin Atlantic.
Heathrow was told by the Civil Aviation Authority (CAA) in March that fees would need to fall over the next two years, seen as a win for airlines who have long said charges at the hub are too high.
But Heathrow has argued it needs higher fees to provide a good service, pay its shareholders returns and fund investment.
“We believe the CAA has once again focused on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport service and resilience consumers want,” Heathrow said in a statement.
Airlines are also expected to appeal the CAA’s decision as they say even with the proposed cut to fees Heathrow is charging too much and remains one of the most expensive airports in the world.
Heathrow is owned by Spanish group Ferrovial FER.MC, Qatar Investment Authority and other financial investors.
