CAA sets interim price cap at Heathrow

LONDON - The UK Civil Aviation Authority (CAA) is holding firm the price cap that Heathrow Airport (HAL) can charge its airline customers in the period from 1 January 2022.

"As HAL's current price control expires on 31 December 2021 and the final decision and licence modifications for a new five-year control period (H7) will not be made and take effect until the summer of 2022, the CAA is introducing this interim measure to protect the interests of consumers in the period until the H7 licence modifications take effect," CAA said.

The charge will be £29.50 per passenger in 2020 prices. This value is in line with our consultation and reflects the uncertainty of the recovery of passenger volumes at the airport from the pandemic, particularly following the emergence of new information about the omicron variant of Covid-19 since the end of the consultation period.

This charge will be adjusted from 2020 prices to 2022 prices to adjust for inflation, which leads to a charge of £30.19. "Once we have set the final price control for the H7 period, any difference between it and the holding price cap will be trued up or down," CAA said.