Revealed: Where your airport parking cash really ends up
British holidaymakers are handing almost £1m a day to Australian pensioners and foreign investment firms as they battle extortionate airport parking charges, The Telegraph can reveal.
Drivers paid £555m to park at Heathrow, Stansted, Manchester and East Midlands airports in 2024 – according to published annual accounts.
As major investors, Australian pension funds alone made over £150m, which expert Mike Ambery said would flow into the pockets of retirees.
The four airports received £1.5m a day from drivers over a 12-month period, with £856,000 of that earned by overseas shareholders in Europe, Canada, the Middle East, Australia and Asia.
In its 2024 annual report, Heathrow confirmed car parking revenue of £185m for the calendar year.
Drivers aren't charged for the first 30 minutes in long stay parking, but can expect to pay £9.40 for up to two hours, £46.80 for a full day and £37.40 for each additional 24 hours.
Pre-booking is cheaper, but a week in Heathrow's park and ride car park can still cost £118. Parking closest to the terminal could set a driver back £256.40 over seven days.
The airport is owned and run by Heathrow Airport Holdings, which in turn is owned by consortium FGP Topco Limited.
This is led by private investment house Ardian – which holds 22.6pc – and contains investors from Qatar, Saudi Arabia, Singapore, Spain and Canada.
Pension fund Australian Retirement Trust also owns 11.2pc, while the Universities Superannuation Scheme, with 2.1pc, is the only UK shareholder.
Manchester, Stansted and East Midlands airports are owned by the Manchester Airports Group. According to its annual report, it raked in £370.3m in parking fees for 2023-2024.
Drivers can pay up to £268 for four days at Stansted, but this can drop to £59.99 with pre-booking. Many services at Manchester and East Midlands are only available in advance.
Manchester City Council and IFM Global Infrastructure Fund, owned by 15 Australian pension funds, both hold an equal 35.5pc share in the airports.
This brings the total share held by Australian pension funds across all four airports to 29pc, yielding around £152m a year in car parking revenue, or £417,000 a day.
Mr Ambery, of Standard Life, said there was a lot of successful foreign investment in UK private markets.
He said: 'Hats off, Australians are making the right global investments and this is a good example of how they do it in the UK.
'Every time someone parks in a UK airport, or uses an M6 toll road or something like that, pensions are going up and that money is flowing through to an Australian retiree.
'We absolutely don't want to miss out on opportunities in the UK, but we shouldn't be envious. We need to be investing in the UK as well as overseas and I think we do take our opportunities, but it's a good example of the UK investment that the Government wants us to ramp up.
'This is the reason why we need to consolidate pension funds, because smaller funds can't go and make these kinds of investments at scale. Australian, Qatari and other overseas funds can and it's paying back really well.'
Why are UK profits going overseas?
Labour is currently working on plans to push pension funds to invest more in the UK and has not ruled out making it mandatory.
When the idea first emerged, experts warned it would move providers into riskier investments and put pensions in jeopardy.
However, it's understood that Rachel Reeves is ready to announce a voluntary code that will see the largest providers invest a minimum of 5pc of assets in private UK funds as she pursues economic growth.
Paul Leandro, of Barnett Waddingham, said: 'Where the Australians have been smart is that they're early shareholders in asset managers. The advantage there is they're effectively scaling up their scale, pooling together to create an even larger fund that gives them deeper pockets and enables them to invest in even bigger projects.
'Government policymakers are probably looking at this and thinking 'Why are the profits from UK airports and infrastructure going overseas?'
'That's likely part of the motivation behind the Government's current push for UK pension funds to invest more money domestically.'
Heathrow Airport also made £274m in concessions from retailers, £89m from catering and £95m from the Heathrow Express – although total revenue fell slightly from £3.7bn in 2023 to £3.6bn last year.
Manchester Airports Group revenue increased from £1bn to £1.2bn during the same period.
A Manchester Airports Group spokesman said: 'Revenue generated from parking, retail and other sources of income allows us to maintain and develop high-quality infrastructure, support affordable air travel and invest in local communities.
'IFM has shown a strong, long-term commitment to Manchester Airports Group, providing vital capital for major expansion projects that enhance the passenger experience, create local jobs and drive economic growth.
'While headquartered in Australia, its fund represents working people saving for retirement around the world – including millions here in the UK.'
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