For the first time, the Business Travel Association (BTA), Institute
of Travel Management (ITM) and Global Business Travel Association (GBTA) have
issued a joint statement hitting out at a potential 50 per cent increase in
passenger charges at the UK’s Heathrow airport, saying the prospect is “unwelcome”.
Last week, The UK’s Civil Aviation Authority (CAA) announced
a consultation period on its proposal to cap an increase in charges at the airport to between
£24.50 and £34.40 next year – up from the £22 fee set in 2020. Heathrow had
originally requested to raise the fee to between £32 and £43, exceeding the £30
cap that had already been set for 2022.
In addition, the CAA confirmed its decision to cap the
amount of money the airport can recover from passengers and airlines for losses
caused by the pandemic to £300 million against Heathrow’s £2.3 billion request.
Carriers immediately lashed out at the CAA’s proposal, with trade
body Airlines UK’s CEO Tim Alderslade saying the regulator is supposed to be “our
last line of defence against a monopoly-abusing hub airport”.
Now industry bodies representing the business travel sector have
joined forces to oppose a high increase in charges.
Clive Wratten, CEO of the BTA, said: “This is an
unprecedented, disproportionate and unjustified increase that risks seriously dampening
demand for travel at a time when British business will be seeking to rebuild
and grow links across the globe.”
ITM chief executive Scott Davies commented: “This rise will
challenge the competitiveness of the UK as a travelling and trade nation and
hamper the ability of the UK travel industry and its workforce to recover.”
Suzanne Neufang, CEO of the GBTA, added: “Corporate buyers
and even business travellers themselves are facing pressure to minimise travel
costs. Companies are scrutinising all trips for the return on investment. A
significant cost increase will likely impact the number of trips approved and
the volume of trips taken, which has the potential to depress travel further.”
The associations say the CAA’s cap on the increase should be
kept in line with the level of Retail Price Index (RPI) inflation, which was 4.9
per cent in September.