Heathrow Airport to Increase Passenger Tax

From the BBC,

“Passengers using Heathrow could face a rise in ticket prices if a £3bn five-year investment plan proposed by airport bosses is approved.

Heathrow wants regulators to allow it to increase charges for airlines to use the airport, between 2014 and 2019.

The charges need to be approved by the Civil Aviation Authority (CAA) with the final decision made by January 2014.

Under the plan, they will go up by the equivalent of £19.33 per passenger for 2012-13 up to a possible £27.30 in 2018-19.

 

Heathrow said the increased charges would pay for investment including the opening of the new Terminal 2 in 2014 and improved check-in and baggage facilities.”

This is terrible news for Avios users. If this does get approved then British Airways will surely pass on the increase making Avios redemption even more expensive. It will make positioning to lower tax airports such as Dublin, Paris, Amsterdam and Frankfurt much more appealing for long haul flights, particularly economy class. There are three things to bear in mind with this news:

1. This has not been approved yet and even if it is won’t come into effect until 2014.
2. The airlines may prove powerful enough opponents to stop its implementation. British Airways and Virgin Atlantic have both come out strongly against the proposal.
3. A review of UK airport capacity is being conducted by the coalition government and, though the report is not due until after the next election and a potential new Labour government may simply ignore any proposals it produces, if it points in the direction of expanding Gatwick or Stansted, or even building the fabled Boris Johnston-championed Thames Airport, then there will be little government support for expanding Heathrow’s facilities.

 

Heathrow Airport to Increase Passenger Tax