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At the moment, the average charge per passenger at Heathrow is £30.19, and the CAA has said this will fall to £26.31 by 2026. However, Heathrow wanted to increase it to £41.95. The CAA said the reduction in the charge "reflects expected increases in passenger numbers as the recovery from the pandemic continues and the higher level of the price cap in 2022, which was put in place in 2021 to reflect the challenges from the pandemic at the time". In December 2021, Heathrow was given permission to raise the passenger charge from £19.60 to £30.19 for this summer. Heathrow chief executive John Holland-Kaye said the regulator "continues to underestimate what it takes to deliver a good passenger service, both in terms of the level of investment and operating costs required and the fair incentive needed for private investors to finance it". "Uncorrected, these elements of the CAA's proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up," he said. |
How did the CAA come to this conclusion that with so many inflationary pressures and manpower constraints, that LHR should face a 10% cut? It’s a £700M shortfall.
The people working at the bottom are going to be the ones to suffer? |
Originally Posted by Dannyboy39
(Post 11253234)
How did the CAA come to this conclusion that with so many inflationary pressures and manpower constraints, that LHR should face a 10% cut? It’s a £700M shortfall.
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Heathrow chief executive John Holland-Kaye said the regulator "continues to underestimate what it takes to deliver a good passenger service, both in terms of the level of investment and operating costs required and the fair incentive needed for private investors to finance it". "Uncorrected, these elements of the CAA's proposal will only result in passengers getting a worse experience at Heathrow as investment in service dries up," he said. Investment is about adding to the overall business, like building another runway. It is not about daily operating matters. Now as far as I can see Heathrow is not currently making any significant investment at all. They may well be engaging and training staff, and periodic Repairs and Renewals. But that is not investment. And thus we don't need any investors to finance it. These operating expenses should come wholly out of their (very substantial) revenue. Of course, if they didn't divert so much of their revenue to dividends for Spanish (and other) shareholders, whose only interest is how much money to scoop out of the UK aviation market, it wouldn't be so much of an issue. Revenue has of course been well down the last two years. Tough bananas, major shareholders, that's one of the things of being a shareholder. Nobody forced you to buy out the old BAA shares in what you knew was a Regulated business, and doing so didn't put any additional funds into the business. |
WHBM - you forget that what goes in a corporate press release can easily twist words. Economists are not the target audience of this press release. There is a good reason as to why PR is labelled as a dark art
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Terminal 2 baggage facility
I've read elsewhere that a new Terminal 2 baggage facility is to be built at a cost of £1.8 Billion.
Does this mean that Terminal 1 will finally be demolished to make way for the new baggage facility and a future planned expansion of Terminal 2. I could be wrong but I'm on the understanding that the current baggage facility for terminal 2 is the one situated in Terminal 1. On another note I'm not finding what I'm looking for online but does anyone have any updates regarding the taxiway between Terminal 2A and Terminal 2B and whether it is fully operational? |
Originally Posted by Sotonsean
(Post 11253852)
I've read elsewhere that a new Terminal 2 baggage facility is to be built at a cost of £1.8 Billion.
Does this mean that Terminal 1 will finally be demolished to make way for the new baggage facility and a future planned expansion of Terminal 2. I could be wrong but I'm on the understanding that the current baggage facility for terminal 2 is the one situated in Terminal 1. Also, having an awareness of what construction projects actually cost, £1.8bn seems ludicrously over the top, and is presumably a figure to try and get one over on the regulator by overstating the Return on Investment of the asset base. |
Fun and games of regulated asset bases, me thinks. There was a rumour (probably a myth) that the bill the regulator saw for a tree to be removed in a car park was over £30k.
That said, £1.8bn sounds high, when the expansion project, pre supply chain crisis and associated inflation, was in for around £15bn (lets not have a debate about whether that number was realistic or not!). But there is plenty of aging infrastructure in that part of the airport, so I expect its far more than just the baggage system. The tunnels connecting to the M4 were, for example, in a sorry state 2 years ago when I last had discussions with the civils team at Heathrow... |
Heathrow discovered there were too many passengers this morning so demanded the cancellation of 30 flights, so as to prevent "unsafe queues" whatever those are.
https://www.theguardian.com/uk-news/...elled-airlines Does that make any sense? It must surely have had the effect of addding a few thousand passengers queuing (safely or unsafely?) around the terminal trying to get help from airlines. ... If an airport refuses to handle a flight, is the airport liable to pay compensation to the passengers or does it fall on the airline? |
Originally Posted by c52
(Post 11254069)
If an airport refuses to handle a flight, is the airport liable to pay compensation to the passengers or does it fall on the airline?
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Copied from Airlive.net …not what is needed at the moment 😥
All fueling systems have stopped working at Heathrow Airport.Mots of London Heathrow Airport departures are expected to be suspended for 3-4 hours due to a process malfunction with the Jet A-1 supplies from the onsite fuel farm.Pleas reload for update…
More to follow… |
short lived and sorted now
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Tampa, Florida
VS to start TPA from 3 November at 4 weekly
Daily from 28 November :ok: |
How significant are Aviation Fuel Services as a company at Heathrow ? Do almost all airlines rely on them or just a handful ? If their employees go on strike, how big an impact would there realistically be ?
Are other fuel vendors able to pick up the slack if AFS are unable to provide fuel ? |
Hello, hello
How is Terminal 2 departures looking at the moment? Off to the States with United early doors on a Sunday morning. Are there any significant delays with check-in and are hold bags getting away ok? |
...answering my own question (from mates on the coal-face).
Check-in queues likely to be around thirty minutes building to over an hour as the day moves on. Self-service is obviously the way to go...unless the airline system picks you out at random for a face to face with check-in staff. Hold baggage is only an issue .. a) if the baggage "system" breaks down b) you arrive last minute, due to the journey that the bags have to make. I hope that helps any other guys and girls. |
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Originally Posted by PAXboy
(Post 11260251)
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It sound like smoke and mirrors to me.
"we are asking [not telling] our airline partners to stop selling summer tickets to limit the impact on passengers". Yeah, right. |
Sounds like a lawyer's dream if they tried to enforce this given the contractual agreements LHR must have in place with all of their airlines.
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