Heathrow is at loggerheads with the major airlines after proposing to increase landing charges almost 6pc above the rate of inflation from next year.
British Airways, Lufthansa and Virgin Atlantic attacked the price increases, which could see landing costs jump from £19.33 per passenger at present to £27.30 by 2018.
Heathrow, whose landing fees are regulated by the Civil Aviation Authority (CAA), said prices “inevitably” had to rise in order to ensure a “fair return” to its investors.
Colin Matthews, chief executive of Heathrow, said the regulator had “dramatically overestimated” the growth in passenger numbers between 2008-2013, resulting in income £650m lower than anticipated.
Passenger figures had been forecast to hit 78.2m but Heathrow has fallen more than 8m short of that target as fewer airlines than expected swapped their short-haul routes out of the airport for long-haul destinations served by larger planes.
Heathrow said investor returns in the past five years have, therefore, been “poor and unsustainable” and it has proposed to the CAA an increase in airport charges of 5.9pc on top of the retail prices index measure of inflation.
Both British Airways and Virgin Atlantic called on the CAA to force a cut in Heathrow’s charges at a time when airlines are having to slash budgets. Charges at Heathrow have tripled over the past decade, the airlines argued, making it the most expensive hub airport in the world.
Steve Griffiths, chief operating officer of Virgin Atlantic, said: “Virgin Atlantic is totally committed to improving the passenger experience at Heathrow. However, we believe this can be done without a repeat of the incredibly steep price rises we have seen in airport charges in the last few years.”
A BA spokesman pointed out Heathrow was proposing to cut its level of investment by a quarter from 2014. “The charges must be reduced significantly over the coming years,” he said. “We hope the regulator will give a fair ruling in the months ahead, which doesn’t penalise customers and airlines.”
Lufthansa said in a statement: “In the highly interdependent system partnership of airports and airlines, it is essential that airport operators take into account the business concepts and the economic capacities of their principle clients.
“An annual increase of the magnitude mentioned would clearly violate this logic and challenge the route economics of many airlines operating to London Heathrow airport, especially those, which operate high frequency services.”
Heathrow’s plans will be reviewed by the CAA, which will publish in April its own proposals for the maximum charges the airport should be allowed to impose.
telegraph.co.uk