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Dubai: UAE-based airlines have decried a decision by the UK's aviation regulator to allow hike in charges passengers pay at Heathrow and Gatwick airports as it would make travel to London costlier.
Airport operator BAA can increase airport charges, which are included in ticket prices, by 50 per cent between 2008 and 2013.
The Civil Aviation Authority has allowed charges per passenger to rise by 23.5 per cent from April 1 at Heathrow, followed by increases of 7.5 per cent plus inflation for each of the following four years.
A similar 21 per cent hike from April 1 at Gatwick will be followed by increases of two per cent plus inflation for each of the following four years.
'These enormous price rises are utterly absurd for all airlines that fly in and out of London airports,' said Iain Burns, vice-president of corporate communications at Etihad Airways.
Emirates said it is "disappointed" by the sharp price rises at Heathrow and Gatwick as these will add "considerably to the cost of operating" from these airports.
"We can only hope that this will quickly result in improved facilities for our passengers," a spokesperson said.
'Failure'
Geneva-based industry group International Air Transport Association (IATA), which represents 240 airlines, said "failure is the only word to describe the CAA's decision".
In a scathing statement, IATA said that in 2006 BAA generated an operating profit of 35 per cent at Heathrow, which produced a net return on capital invested of 15.3 per cent, twice the level of the cost of capital set by the aviation regulator.
"The regulator already allowed a 50 per cent increase between 2003 and 2008 and now the road is being paved with gold for a further 50 per cent increase. Only an out-of-control monopoly could think in such terms. And only a phantom regulator that is the result of a flawed structure could allow this to happen," IATA director-general Giovanni Bisignani said.
Competitiveness
He said the decision could have an impact on London's competitiveness as an aviation hub.
"The bureaucrats have proved to be impotent in defending the interests of travellers against monopolies. If we do not fix London's dysfunctional airports, the city's regular travellers will find a more convenient home. Frankfurt, for example, would be only too happy to welcome them," he added.
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