The UK’s Heathrow Airport (LHR) is reportedly facing opposition from some of the board members for its plans to raise $3.8bn from airlines and customers by increasing prices.
The Telegraph reported that through this plan, the airport authorities intend to recover the losses incurred due to the Covid-19 by the pandemic.
Go deeper with GlobalData
Qatar Airways (QTR), which is the second-biggest shareholder, was quoted by the Telegraph as saying: “The plan is unreasonable, not in the consumer interest and should be rejected.”
The Civil Aviation Authority (CAA) had also rejected the airport’s demand to alter a complex regulatory setup.
A spokesman for Heathrow told the publication that a regulatory adjustment is required to reduce prices for consumers.
Given that the airport depends on long-haul markets, it has been hit particularly hard by the Covid-19 pandemic.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDue to the ban on non-essential travel and quarantine rules, passenger volumes at the airport saw a drastic drop, hitting their lowest level since 1966.
In 2020, Heathrow posted a $2.7bn (£2bn) pretax loss.
In February, Heathrow Airport pitched two forward-thinking ideas to Innovate UK’s Future Flight Challenge.
The win provides the airport with the opportunity to research new pioneering concepts that facilitate a reduction in emission and cost, thereby making the airport more efficient as the industry works to recover from the Covid-19 impact.
The two successful projects being researched by Heathrow include Fly2Plan and Project NAPKIN.
