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Heathrow can recover runway costs, raising prospect of higher fares

Heathrow Airport will be allowed to recover up to £320m spent on early third runway plans through higher airline charges, with costs likely to feed through to ticket prices.

·2 min read
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Heathrow Airport will be allowed to charge airlines more for its services to recover money spent on the early stages of its third runway project. The aviation regulator is permitting the airport to claw back up to £320m through higher airport charges to airlines for each passenger, which is likely to end up being added to ticket prices.

What does the decision mean for airlines and passengers?

The decision means Heathrow can recover some of the costs linked to its runway plans by increasing the charges it levies on airlines, with the cost likely to be passed on to travellers. The airport said the move relates to spending on the early stages of the third runway project.

Will rival bidder costs also be recovered?

Yes. A bidder which unsuccessfully put forward a rival design involving a shorter runway, Arora Group's Heathrow West, will also be allowed to recover £4.1m pounds in costs.

What have the regulator and Heathrow said?

The Civil Aviation Authority (CAA) and Heathrow said safeguards would be put in place to protect consumers from unjustified costs.

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Key Facts

  • Heathrow Airport will be allowed to charge airlines more to recover spending on early third runway work.
  • The regulator is allowing up to £320m to be clawed back through higher charges per passenger.
  • Arora Group's Heathrow West will also be allowed to recover £4.1m pounds in costs.
  • The CAA and Heathrow said safeguards would be put in place to protect consumers from unjustified costs.

This article was sourced from bbc

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