Reuters
Companies and airlines say Heathrow is the most expensive airport in the world
Airlines and hoteliers say that the Heathrow’s financing model should be reformed before any investment is made in the third track offered.
Companies wish a fundamental examination of the regulations established by the Authority Civil Aviation (CAA) which govern what Heathrow can invoice. They say that the current model makes Heathrow the most expensive airport in the world.
If changes are not made, companies say that the third track will not occur because it will be too expensive.
The CAA said that it “would carefully consider” carrying out an examination of the Heathrow’s economic regulatory model.
A Heathrow source said that the airport management has already told airlines and the government that it would propose to examine a different long -term regulatory model for a third track.
But, as with other goods that consumers buy, those who use a service or a product must pay the cost of supply or production as is the case today.
Surinder Arora told BBC London that Heathrow’s regulation system encourages ineffective expenses
Surinder Arora is the chair of the Arora group which has 16 hotels and many land around the airport. He is pro-expansion but he has doubts that this will happen.
He told BBC London that Heathrow overchanted for many articles.
For example, he says that he pays 2.62PA unit for a water unit at the Renaissance hotel which is outside the border of Heathrow airport.
In his Hilton hotel next to Terminal 2, inside the border, he pays much more Heathrow Airport – 23.27PA. This high price is transmitted to its customers.
It gives other examples, including three cut oaks and airlines are billed £ 76,000.
A refuge which, according to him, would normally cost £ 20,000, he said cost Heathrow 1.1 million pounds sterling.
Heathrow sources dispute these figures.
But he says that the regulatory model allows Heathrow to load what they want for many services, such as water, parking or construction because they are a monopoly.
“The current monopoly in Heathrow has not only had a lot on the charge of passengers on aviation costs, but also in their parking lot and a variety of other services while it continues to stand out as the most expensive airport of the world by a long way, “explains Mr. Arora.
“We are delighted to work with the airlines to ask the CAA to examine more carefully the regulatory problems that lead to such high prices and to enter the possibility of competition to improve Heathrow’s offer to passengers.”
The most expensive for airport costs
He told me that without change, the third track would not happen.
“If it remains the same, it will not happen,” he says.
“If you look at the last two decades, they have never delivered a project in time and on budget.
“What they look at the expenses is 62 billion pounds sterling plus. And the current value of the airport is 20 billion pounds sterling.
“So what they say is that we will increase the number of passengers by 50%, but we want you to pay three times that the value today. How can a business survive it?
“If they continue the same model, everyone will eventually pay it.”
Nigel Wicking, director general of the Heathrow airline committee, said all costs are passed on to travelers.
“Heathrow quickly delayed on other major airports from around the world in installations and services to airline customers, while having the little enviable to be the most expensive for airport costs. This cannot Not continue, “he said.
“The community of airlines wants to offer travelers, towards and from the United Kingdom, a great experience through Heathrow and we want growth, also avoiding disproportionate costs that we too often see by Heathrow Limited Airport. “”
The government said it would support a third track if it can be widened in noise, pollution and carbon limits.
This week, Heathrow Airport said it would request a building permit by summer.
Heathrow’s source said it was not very logical to suggest that passengers would have new tracks and terminal buildings for free because they would require investments beyond current regular investment levels.
Heathrow wants to organize a transparent process and work in partnership with Airlines, the regulator and ministers to set up a model that offers the advantages of expansion for the United Kingdom as quickly as possible – including the lower reductions to which Consumers can therefore expect new unlocked capabilities as a result.
He also stressed that within the framework of the Airlines settling must accept to approve all the expenses and the regulator ensures that it is a value for money.
Selina Chadha, group director for consumers and markets in the United Kingdom CAA, said: “We have received a submission asking us to examine the Heathrow’s economic regulatory model, and we will carefully consider it in the framework of our commitment to effective regulation.
“We will always focus on the supply of consumers’ interest, while supporting growth, investment and efficiency.”
