AirportsZone: Europe

Heathrow and BA in £500 million dispute 

By September 8, 2020 No Comments

Heathrow and British Airways have reached disagreement over a proposal to charge airlines £500m for the airport’s failed expansion plans.

A consultation recommends allowing the airport the bill airlines for costs related to the third runway incurred until February this year.

The plans to build a third runway at Heathrow were blocked in February following a legal challenge.

A spokesman for IAG told the Sunday Telegraph: “In any other business, a wealthy, privately owned company like Heathrow would have to meet its own sunk costs.

“But Heathrow is a monopoly that will simply pass the bill to the airlines, further damaging UK aviation as it struggles to survive the Covid crisis. The regulator must step in.”

A spokesperson for Heathrow said, “The CAA established an approach to expansion-related costs some time ago – with that approach approved and agreed by airlines, including IAG. We believe this approach should remain.”