Heathrow passenger charge to be curbed

Heathrow Airport has been told it cannot raise the passenger charges for airlines by as much as it wanted.

At present, the airport can charge up to £23 per passenger for the cost of operating terminals, runways, baggage systems and security.

It wanted to raise the price to as much as £43 in January. However, the Civil Aviation Authority has now said it will be capped at £25 to £35 for five years.

An interim figure of £30 has already been set for 2022.

The move comes as the aviation industry is struggling to recover from the impact of the coronavirus pandemic.

The CAA also reconfirmed its decision earlier this year on Heathrow's regulated asset base, which determines how much money the airport can recover from its customers through charges.

This will now rise by £300m, rather than the £2bn requested by the company.

The plans will be subject to consultation until mid-December, with a final decision being taken in January.

If the airlines that use Heathrow or the airport itself want to contest the plan, they can then take the matter to the competition regulator, the Competition and Markets Authority.