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Heathrow has secured a victory in its battle over passenger fees following a ruling by the competition watchdog.
The regulator has provisionally ruled that the Civil Aviation Authority (CAA) made some errors in its decision over how much Heathrow Airport can charge airlines.
The Competition and Markets Authority (CMA) stepped in to review the CAA’s decision after the cut to charges it proposed for the next three years angered both sides.
Heathrow said lower fees would hit investment, while the airlines, British Airways and Virgin Atlantic, said the cuts did not go far enough.
Britain’s biggest airport wanted charges to increase to £40 per passenger following huge losses as a result of the Covid shutdown.
However, the CAA said fees would remain at an average of £31.57 this year – in line with 2022 – before falling to £25.43 for the following three years.
The CMA has now proposed that the CAA reconsider aspects of its decision, but noted: “We would expect any such changes to have only a small net impact relative to the CAA’s overall price control decision.”
The CMA now has until October 17 to decide whether to allow or dismiss the appeals, it said in its statement on Friday.
It added: “Overall we provisionally consider that the CAA was not wrong in most of the decisions that were appealed to us.”
A Virgin Atlantic spokesman said: “After three years of consultation, it’s disappointing that the CMA has largely endorsed the CAA’s decision, which did not go far enough to protect consumers from excessive charges at Heathrow.
“The airport has prioritised shareholders over consumers, relying on pessimistic passenger forecasts to support its agenda, in stark contrast to the actual number of passengers flying from Heathrow which is close to pre-pandemic levels.
“Under the incoming CEO, Heathrow must now put customers first, working collaboratively with airlines to get back to its best so it can deliver a world class experience commensurate with being the world’s most expensive airport.”