To ask the Secretary of State for Transport, whether his Department has made an assessment of the economic impact of increasing the regulated per passenger charges at London Heathrow airport for the H7 period by (a) 50 and (b) 100 per cent.
4 July 2022
The Civil Aviation Authority (CAA) is the economic regulator of Heathrow under the Civil Aviation Act 2012, independent of government. The CAA published its consultation on Final Proposals for the H7 price control period (2022-26) on 28 June on 2022. The consultation will run for six weeks, closing on 9 August. A final decision is expected in the Autumn.
The CAA has proposed a cap on the per passenger charge that is on average £24.50 (2020 prices). The charge will start higher and reduce each year as passenger numbers recover.
The CAA’s Final Proposals have been further developed from its Initial Proposals in October 2021, since when it has: engaged extensively with stakeholders including the airport and its airlines and assessed their consultation responses; updated its evidence base; commissioned further independent expert advice; and updated its own analysis.
International connectivity is vital for connecting people and businesses, facilitating tourism and trade, with Heathrow as the UK’s only hub airport a fundamental part of that; and no one wants to see prices at Heathrow Airport rise any more than is necessary. Ultimately though, decisions on routes and fares remain a commercial matter for the airlines.