Key facts
- Heathrow Airport Limited (HAL) can recoup £320 million spent on its third runway bid.
- Heathrow West can also reclaim £4.2 million spent on its proposal.
- The Civil Aviation Authority (CAA) approved passing these costs onto passengers through airfare increases.
- A charge of 10p per passenger fare will be added for 20-25 years to cover HAL's costs.
- The CAA's ruling will increase the airport charge per passenger by approximately 15 pence in 2028, rising to 30 pence in subsequent years.
Heathrow Airport Limited (HAL) has been granted permission by the Civil Aviation Authority (CAA) to pass on over £300 million in costs associated with preparing its third runway bid to passengers. The aviation watchdog ruled that HAL can recoup the £320 million already spent by increasing fees on airfares. Rival bidder Heathrow West will also be allowed to reclaim £4.2 million of its proposal costs.
The CAA stated that without the planning and design efforts from both bidders, the timely delivery of the third runway expansion would have been jeopardized. HAL will add 10p to every passenger fare for the next 20 to 25 years to cover its expenses. The regulator also noted that the costs are capped, independently scrutinized, and subject to efficiency reviews.
Airlines using Heathrow have expressed growing dissatisfaction with the airport's high charges, which are already the most expensive globally at £28.80 per passenger. These charges are expected to rise significantly once the full costs of the third runway are factored in. The CAA's decision will increase the airport charge per passenger by approximately 15 pence in 2028, rising to 30 pence in subsequent years, with the early costs rolling off tickets in roughly 20 to 25 years.