LONDON — London Heathrow Airport (LHR), the UK’s premier hub, will be permitted to charge up to GBP 0,15 (15 pence) more per passenger in 2028. This will help it cover initial costs for airport expansion.
The busy hub, which is Britain's largest airport facility, is currently operating at capacity. As such, there is a need for expansion and an additional runway. This is planned to be constructed 15 miles west of London.
Plans to Fund LHR Expansion
The UK's Civil Aviation Authority regulator is reportedly considering ways in which it can facilitate LHR's expansion.
According to Reuters, Britain's aviation regulator has set out funding limits for the GBP 33 billion expansion plan. The £33 billion expansion project will be privately funded.
That said, IAG, the owner of British Airways (BA), as well as various airlines, have expressed concerns regarding higher taxes. They state that LHR is one of the world's most expensive airports and that increased costs could impact passenger travel.
The UK's CAA said funding for planning and design work costs will come from the airport recovering what it spent in 2025 and 2026 through airport charges. However, this is subject to a cap of £320 million.
The recovery of these costs will increase the maximum airport charge per passenger by around 15 pence in 2028. This will rise to around 30 pence in later years, according to the CAA.
The CAA is expected to outline arrangements for costs from 2027 onwards.
Featured image: LHR
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