Could Rise More Than 40 Percent To Help Pay For Investments

London's Heathrow Airport is planning to hike passenger charges by more than 40 percent by the end of the decade in an effort to help pay for an investment plan that amounts to $4.7 billion.

The move was quickly criticized by airlines. British Airways said in a statement “The charges must be reduced significantly over the coming years, especially when the airport is cutting investment by around 25 per cent from next year onwards." Virgin Atlantic issued a similar statement, indicating that the higher fees are "triple" what they were 10 years ago. “In the current economic climate other businesses, in private and public sectors and especially airlines, are making savings and delivering on less money,” the Virgin statement said. “Airports should not be exempt from that and we call upon the CAA to use its regulatory powers to ensure there is a real terms reduction in charges applied to each passenger."

The Civil Aviation Authority (CAA) has the final say on the fee increases, and according to a report in Buying Business Travel online, that is not likely to come until January of next year.

Heathrow's chief executive Colin Matthews said the investment plan is necessary for the airport to be able to keep pace with competitors in Europe. "We must continue to improve the service we offer passengers and airlines," he said.

(Image from file)

FMI: www.heathrowairport.com