Heathrow Charges To Rise - But Causes Fury Amongst Airport Users

Tuesday 11th March 2008

Heathrow Airport has raised its charges after being given approval to do so, however it has sparked controversy with British Airways who have branded the rise as "overly generous" in favour of BAA which is currently in a large amount of debt.

The overall airline charges have been raised by 23.5% which British Airways have responded to by saying "these overly generous charges far exceed what is required to upgrade facilities across Heathrow." Shares in Ferrovial - the Spanish owners of BAA rose 8.8% after the announcement of the rise in charges was made. The new charges should now mean that they are in place to refinance their loans. However BAA expanded upon their comments stating, "the CAA must hold BAA to account throughout the five year period to ensure the airport operator delivers improvements and does not divert funds to pay off Ferrovial's debts."

This not the only area that the Spanish owners have come under criticism from however as service levels at Heathrow Airport as well as baggage loses and delays are also common and have been well-covered in the media. The CAA (Civil Aviation Authority) stated that Heathrow Airport would be permitted to charge and extra 12.8 pounds from the 1st of April 2008 and they state that this is no more than inflation.

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