Airlines and operators have given mixed reactions to the UK Civil Aviation Authority”s (CAA) price control proposals for Heathrow and Gatwick airports.
The CAA has set out its stall ” subject to a two month consultation period - for charges relating to the rive years from 1 April 2008 to 31 March 2013, with Heathrow in particular facing steep increases.
Prices per passenger at the UK”s premier gateway could rise by 15.6% to ”11.97 ($24.6) in 2008/09, while the subsequent years would see charges increase by the retail price index inflation rate plus 7.5% each year.
London Gatwick would see like-for-like hikes of 8.2% and 2% receptively during the same period.
The CAA appears stuck somewhat between a rock and a hard place as successive airlines, operators and passengers have queued up this year to deliver stinging indictments of what they view as Heathrow”s major shortcomings.
However, the regulator maintains that improvements have to come at a cost. ”The CAA recognises the increases in airport charges, particularly at Heathrow, are significant,” it said in a statement.
”However, these increases reflect the extra cost of security operations [and] the cost of recent capital projects. The CAA considers that the best way to ensure passengers and airlines receive good service at an appropriate price, is to provide BAA with incentives to improve its own operating, investment and commercial performance.”
It”s not just BAA that has to deliver though. As anyone enduring Heathrow will know, the myriad agencies that operate there all have to perform efficiently to deliver seamless service. These include airlines, their agents and the Border and Immigration Agency, among others.
But major Heathrow users, British Airways (BA) and bmi, were understandably not so happy. ”We have already warned that price controls for Heathrow may put under further scrutiny the existence and viability of UK regional air links into Heathrow and have the potential of pricing them out of the market,” noted the airline icily.
And its deputy chief executive pulled no punches either adding that bmi had had ”to endure inflation-busting increases for the last five years for indifferent levels of service.”
BA as Heathrow”s largest airline, also had some scathing views on the CAA proposals. ”Investment should be in the interests of the customer and the right controls should be in place to ensure greatly improved levels of service, following the Competition Commission's public interest finding against BAA's performance,” it noted in a statement.
”We are sure this could be achieved without the excessive price hike that the CAA is proposing compared with the detailed recommendations from the Competition Commission.”