'Heathrow Reimagined: A Better Hub for Britain' campaign launched

In an unprecedented move, Heathrow’s Air Operators Committee (AOC), Arora Group, International Airlines Group (IAG) and Virgin Atlantic have launched the campaign "Heathrow Reimagined: A Better Hub for Britain". The aim is to urge the Civil Aviation Authority (CAA) to conduct an urgent and fundamental review of the regulatory system that governs the UK’s main hub, considered the most expensive in the world.

According to the data presented, Heathrow charges a whopping £1.1 billion a year more than other major European airports, a situation that has caused the terminal to slip in international passenger satisfaction rankings. The signatories of the campaign argue that the current regulatory model, fuelled by the significant market power of Heathrow Airport Limited, incentivises inefficient spending and penalises both consumers and airlines.

The campaign demands

The initiative, which represents the first collaboration between these entities in the sector, aims to:

- Call for a full review of the regulatory framework before further investment in expansion, but do not delay the construction of a third runway. The project, initially estimated in 2014 at around £14bn, could now be significantly higher.

- Promote competition and improve the offer of air services, ensuring more competitive fares and up-to-date infrastructure.

The briefing paper compares, for example, investments in new terminals at international airports such as Barcelona, Frankfurt, Madrid and Munich, highlighting how such facilities, for comparable sizes, have incurred significantly lower costs than the ongoing upgrades at Heathrow's Terminals 2 and 5. It also cites Istanbul's new airport, under development for a capacity of 200 million passengers, and the upgrade plans at New York's-"JFK" and Singapore Changi.

Statements by representatives

Nigel Wicking, CEO of Heathrow AOC, said: "Heathrow is rapidly falling behind international standards, both in terms of infrastructure and the service it provides to airlines. Current operating costs are not sustainable and the industry needs reforms to deliver a better experience at lower prices". Surinder Arora, founder and chairman of the Arora Group, added: "I have worked around Heathrow for decades and have watched the decline of what was once considered the best airport in the world. The current monopoly not only imposes exorbitant charges on passengers, but also extends the costs to ancillary services, such as parking. It is essential that the CAA intervenes to review the regulatory system and stimulate competition".

Luis Gallego, CEO of IAG, said: "When comparing the passenger experience at Heathrow with other international hubs, it is clear that the current cost is not justified. There is an urgent need for a regulatory overhaul to make the airport more accessible and competitive, delivering value for both consumers and the airline industry". Shai Weiss, CEO of Virgin Atlantic, said: "The current regulatory model does not sufficiently constrain Heathrow's monopoly power, resulting in high costs and ageing infrastructure. We are calling on the CAA to undertake a fundamental overhaul to end this vicious cycle, delivering lasting benefits for passengers, airlines and the UK economy".

A call to action

With the launch of their joint proposal, the major airlines are committing to working with the industry, government and the CAA to deliver the necessary reforms. The aim is to transform Heathrow into a world-class hub that can once again be a source of national pride, while also being a model of efficiency and global competitiveness. The Heathrow Reimagined campaign is therefore the first step towards a structural change in the airport regulatory system, with the aim of ensuring that future investments deliver real value and that the travel experience is in line with the expectations of passengers and airlines.

Currently, the CAA sets the maximum landing fees that airlines must pay, costs that are then passed on to passengers. This prospect highlights even more the need for a substantial review of the entire tariff system to safeguard the economic interests of both travellers and airlines operating at the important British airport.