Heathrow critics say it should face sanctions on broken promises if it tries to raise landing charges with a 3rd runway

Critics of Heathrow are calling for formal sanctions to be imposed on the airport if it fails to meet promises linked to its third runway expansion scheme. Heathrow’s boss John Holland Kaye has claimed the amount airlines pay for each of their passengers to land at the airport will remain “close to current levels” once the new runway is built. But evidence provided to the influential Transport Committee of MPs in Parliament claimed there are “weak incentives placed on Heathrow to tackle costs aggressively”. Heathrow’s landing charge per passenger now is about £22, but less for domestic flights.  Heathrow also makes over £8 per passenger through retail and car parking. London’s Deputy Mayor for Transport Valerie Shawcross has called for there to be a ‘clear enforcement mechanism’ against Heathrow if it breaks expansion pledges, including its hope of half its passengers to use public transport by 2030, (without any formal mechanism for enforcing this). … “There is precedent [for a major infrastructure project] to be refused where particular thresholds or goals are not met and I believe this should be systematically applied to pledges made by both Heathrow and the Secretary of State [Chris Grayling],” … “A clear enforcement mechanism should also be included for imposing a cap on flights when such pledges are breached.”
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Heathrow critics say it should face sanctions on broken promises following spike in passenger charges

By Bradley Gerrard  (Telegraph, Business)

18 MARCH 2018

Critics of Heathrow are calling for formal sanctions to be imposed on the airport if it fails to meet promises linked to its third runway expansion scheme after data revealed a huge spike in passenger charges.

Heathrow’s boss John Holland Kaye has claimed the amount airlines pay for each of their passengers to land at the airport will remain “close to current levels” once the new runway is built.

But evidence provided to an influential committee of MPs claims there are “weak incentives placed on Heathrow to tackle costs aggressively”.

The major aviation trade body International Air Transport Association (IATA) revealed data which showed the amount Heathrow makes from passengers [aeronautical income, not retail income] had rocketed to an average of £22.45 in 2016 from just £8.45 a decade before. Charges can be lower for domestic passengers but higher for those on long-haul journeys.

[Heathrow’s aeronautical income per passenger in 2017 was £22, and it was £22.45 in 2016. The retail income per passenger in 2017 was £8.45 in 2017 and £8.09 in 2016.  Link   ]

IATA’s Rafael Schvartzman said this 167pc rise in the amount Heathrow makes from each passenger compared to an average 10pc fall in airline fares from the airport.

London’s Deputy Mayor for Transport Valerie Shawcross has called for their to be a ‘clear enforcement mechanism’ against Heathrow if it breaks expansion pledges

Valerie Shawcross CBE, the deputy mayor for transport, said it was “concerning” Heathrow was able to make various pledges, including an aim for half of its passengers to use public transport by 2030, without any formal mechanism for enforcing them.

“There is precedent [for a major infrastructure project] to be refused where particular thresholds or goals are not met and I believe this should be systematically applied to pledges made by both Heathrow and the Secretary of State [Chris Grayling],” she said.

“A clear enforcement mechanism should also be included for imposing a cap on flights when such pledges are breached.”

The mounting pressure comes as the Transport Select Committee prepares to release its report on the proposed scheme later this month, [Friday 23rd March] which will highlight areas of concern members have about the third runway project.

The proposed scheme is likely to be debated by MPs in June and if Parliament backs it, the airport will then be able to move to the next stage of the planning process, which involves producing a more detailed Development Consent Order.

A debate in the House of Lords this week also raised concerns that passenger numbers at regional airports would have to fall if the UK is to meet climate change obligations once Heathrow’s third runway is built.

Baroness Kramer, a former transport minister, claimed passenger numbers would have to fall by more than half (55pc) in the West Midlands, more than a third (36pc) in the South West and 11pc in Scotland.

https://www.telegraph.co.uk/business/2018/03/18/heathrow-critics-say-should-face-sanctions-broken-promises-following/

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