
Heathrow wants to raise passenger fees to fund terminal upgrades
The proposal, outlining its strategy for the next five-year regulatory period, was submitted to the Civil Aviation Authority (CAA) on Friday, detailing upgrades to existing terminals as a means to boost capacity.
The initiative offers a quicker expansion route than the government's long-term vision for a new runway at Europe's busiest airport, located west of London, which is not anticipated to be operational until 2035 at the earliest.
The proposed 10 million passenger increase represents a 12 per cent rise on current numbers.
To facilitate this growth, Heathrow is seeking to raise the average charge per passenger from the current £28.46 to £33.26.
The CAA, responsible for overseeing airport charges, is now set to review the detailed plans before issuing its official response.
The request comes amid long-standing complaints from airlines, which say that Heathrow is already one of the world's most expensive airports and have urged the regulator to reduce charges.
Virgin Atlantic, British Airways ' parent IAG, the Heathrow Airline Operators' Committee (AOC) and the Arora hotel group have joined forces in an unprecedented coordinated attack on the airport's regulatory regime.
They hope to persuade the Civil Aviation Authority (CAA) 'to conduct an urgent and fundamental review into the way in which Heathrow, the UK's only hub airport and the largest in Europe, is regulated, for the benefit of consumers, businesses and the UK economy'.
'Heathrow has become the world's most expensive airport, with passengers and airlines today paying £1.1bn more each year than if charges were in line with equivalent major European airports,' the partners said in a statement.
Meanwhile, Heathrow has blamed expensive building costs, its constrained area and large numbers of long-haul flights for its high fees.
In a letter to the Transport Select Committee, Heathrow chief executive Thomas Woldbye said: 'One factor is that the airport's small physical footprint means a lot of our infrastructure has to be underground or built in a unique way, increasing the cost.
'We are also the busiest two-runway airport in the world, meaning the intensity of our operating environment is comparatively more complex and makes it much harder to make targeted improvements and investment while remaining operational.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Mail
a few seconds ago
- Daily Mail
Nine million Britons can afford to invest but lack 'emotional capacity' for risk
Britain has a problem. Millions of people are holding money in cash savings, and as a result are losing out on the potential long-term returns from investing. More than half of adults, 58 per cent, and equivalent to some 31.4million people are unwilling to face short-term losses on investments because they have low 'emotional' capacity for risk, new data from Interactive Investor reveals. Of course, watching your hard-earned cash fall in value when invested is tough to take, and for many this money is needed in case of emergencies, or simply to pay for day-to-day expenses. However, a third of those who said they didn't have the emotional capacity to take investment risk, as many as nine million people, do have the financial resilience to do so. Interactive Investor said this leads to these people 'under-investing', with 71 per cent of the 3,000 people surveyed owning no investments outside of their pension. Data from the Bank of England reveals that in May an eye-watering £280billion worth of cash was sitting in UK bank accounts earning no interest Richard Wilson, chief executive of Interactive Investor, said: 'Our research has unearthed a safety-first instinct among savers that presents a serious challenge for the UK. 'Millions of people have the financial capacity to invest, but don't believe it's worth the risk - over a lifetime that's likely to have a serious impact on their financial resilience. 'The dangers of not taking any risk are fast climbing up the political and regulatory agenda, and analysis shows that Britain has the lowest levels of equity ownership outside of pensions of any G7 country, with a disproportionate amount in cash and property.' In fact, as few as 12 per cent of people have a high emotional capacity for risk. A slightly higher proportion, 19 per cent, had a high risk tolerance. That phrase refers to how willing people are to accept the possibility of losses in favour of higher returns in the long term. Still, around 57 per cent of people still scored low for risk tolerance, meaning that they aren't willing to take risks for rewards in the long term, even when financially stable. Greg Davies, head of behavioural finance at Oxford Risk, said: 'Most people invest too little and take less risk than they could safely afford. This isn't about logic - it's about emotion. Emotional discomfort with short-term market ups and downs leads even financially resilient investors to underinvest. 'For those with high financial capacity, the emotional gap is often greatest: they could afford to aim higher, but their feelings hold them back.' Data from the Bank of England reveals that in May an eye-watering £280billion worth of cash was sitting in UK bank accounts earning no interest. The Chancellor, Rachel Reeves, has launched a campaign to promote retail investing among ordinary people, promoting investing over holding large sums of money in cash. Meanwhile, 'targeted support' reforms will come into play next year, offering tailored recommendations based on what people in similar financial circumstances are doing with their money. Along with this came fears that the Chancellor would scrap the cash Isa in a bid to push more towards investing. On the news that this wouldn't be the case - for now at least - savers breathed an audible sigh of relief. At the same time though, many resigned themselves to continuing to miss out on much higher returns. Interestingly, just three per cent said they would have a higher tolerance for investing if cash Isa tax benefits were slashed. Meanwhile, 41 per cent said they would invest if they had more money, while 16 per cent said they would do so if they understood investments better. While it Is recommended that savers only invest cash that they can afford to lose, as well as making sure that they build up an emergency pot and cash savings before doing so, many are sitting on cash pots earning no interest. Even when held in high interest accounts like cash Isas, the value of cash savings is gradually eroded as inflation outpaces the rates paid out by banks. Craig Rickman, personal finance expert at Interactive Investor, added: 'While people should only take on as much risk as is right for them, short-term emotional barriers often mean we don't take the risk that's right for our long-term needs.


The Guardian
a few seconds ago
- The Guardian
Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'
Conservative and Liberal Democrat peers have been accused of trying to block stronger rights for millions of workers amid a growing campaign by business leaders to water down Labour's zero-hours contract plans. In a blow for the government, the Lords last week voted to curtail the manifesto promise to give workers a right to a guaranteed hours contract and day-one protections against unfair dismissal. Setting up a showdown with the upper chamber, the Lords passed a series of amendments to the employment rights bill that will must be addressed by ministers when MPs return from their summer break. In an angry intervention on Monday, the general secretary of the Trades Union Congress, Paul Nowak, said the Lords was 'doing the bidding of bad bosses' and ought to 'get out of the way' of the plans. 'The sight of hereditary peers voting to block stronger workers' rights belongs in another century. It's plain wrong,' he said. Under the Lords' amendments, a requirement for employers to offer zero-hours workers a contract covering a guaranteed number of hours would be shifted to place the onus on staff to ask for such an arrangement. Protections against unfair dismissal from the first day of employment – which the government plans to reduce from the current level of two years – would be extended to six months, and changes to free up trade unions would be curtailed. The bill will return to the Commons in September for MPs to consider the amendments. The two houses then continue to vote on the changes in a process known as 'ping-pong' until a way forward is agreed. The amendments were put forward by the Lib Dem Lord Goddard, a former leader of Stockport council, and two Tory peers: Lord Hunt, who is a shadow business minister, and Lord Sharpe, a former investment banker. Hunt did not respond to a request for comment. Sharpe said: 'Keir Starmer's unemployment bill is a disaster for employees as much as it is a threat to business. Labour politicians who have never worked in business are destroying the economy. Only the Conservatives are listening to business and making the case for growth.' Goddard said he feared Labour's 'rushed bill' would be bad for workers in small businesses and on family-owned farms. 'They were badly let down by the Conservatives, and Labour seems to have a blind spot when it comes to farms and small businesses, too. 'We support the bill as a whole and have worked constructively to try to improve it. It's a shame to see the government getting upset that we didn't simply give them a blank cheque.' Employers groups welcomed the changes, saying the Lords was responding to business concerns. Helen Dickinson, the chief executive of the British Retail Consortium, said: 'Putting forward positive, practical and pragmatic amendments to the employment rights bill [will] help to protect the availability of valuable, local, part-time and entry level jobs up and down the country.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Industry chiefs have stepped up lobbying against the workers' rights changes, warning that companies were already slashing jobs and putting up prices in response to tax rises in chancellor Rachel Reeves's autumn budget. Dickinson said there was 'further to go' to curb the employment rights bill. 'Even with these amendments accepted, retailers remain worried about the consequences for jobs from other areas of the bill.' Union leaders have, though, urged ministers to stand firm. A recent mega poll of 21,000 people commissioned by the TUC found a majority of UK voters – including Conservative, Lib Dem and Reform UK supporters – backed a ban on zero-hours contracts. Nowak said the government plan included 'commonsense protections' that a majority of people wanted to see become law. 'These peers are not just out of touch, they are actively defying their own voters – and the public at large. The government must stand firm in the face of cynical attacks and deliver the employment rights bill in full.'


Daily Mail
a few seconds ago
- Daily Mail
Shareholder revolt over Wise plans to move listing to New York
Wise faces a shareholder revolt today over its plan to move its primary listing to New York – after a falling out between its founders. Taavet Hinrikus – one of the fintech firm's founders – has urged investors to vote against the move on the grounds of concerns about shareholder rights that are tied up with the proposal. Wise's planned departure has been described as a 'hammer blow' to the City and will make it the latest in a string of UK-listed companies upping sticks for the US. Wise has said shareholders are 'overwhelmingly in favour' of the plans. A shareholder meeting to rubber stamp the move will be held today. Wise is led by boss Kristo Kaarmann, who founded it with Hinrikus, a fellow Estonian, in 2011. Hinrikus has since left the company but still owns a 5.1 per cent stake via his firm Skaala Investments.