The Civil Aviation Authority (CAA) has rejected efforts from Heathrow to significantly raise its landing fees to fund a series of upgrades to the airport.
While Heathrow Airport is privately owned and run, it is strictly regulated by the CAA as it has an effective monopoly on many international long-haul flights, which could lead to steep price increases without government intervention.
With the current regulatory period coming to an end, the CAA has just published its initial proposals for the next period covering 2027 to 2031. While Heathrow wanted a 17% increase to landing charges (around £33 per passenger), the CAA set the cap on airport charges at between £27.20 and £30.50 per passenger.
The airport is currently undergoing a £10bn transformation plan that will see the demolition of Terminal 1 and revamps of both Terminal 2 and 4. Meanwhile, it is also installing a network of AI-powered cameras designed to improve punctuality and recently completed upgrading its security scanners allowing...