Heathrow criticises rate cuts by regulators
The operator of Heathrow airport, which is one of the businnest airport in the region, has criticised a move by the regulator to seek lower landinf fees for the airlines.
The lower landing fees would mean lower fares for passengers as airlines are likely to pass the benedfit of lower landing fees chrged by the airports to the passengers. The airport has condemned price cuts that were ordered by the regulator on friday and also said that it might cut investment at the country's biggest airport.
UK's aviation sector regulator, the Civil Aviation Authority (CAA) has ordered that the take-off and landing fees at Heathrow should be reduced by 1.5 per cent per year between 2014 and 2019 starting from April 2014.
The regulator had said on October that the airport fees must rise with the inflation. The airport has sought permission to increase charges by 4.6 per cent above inflation for the five years from April 2014. The regulator said that it's strategy changed in the matter as passenger traffic forecasts strengthened since October while the cost of capital has been revised.
Airport's chief executive, Colin Matthews, said, "We will review our investment plan to see whether it is still financeable in light of the CAA's settlement." He added that the airport will find it difficult to handle weather emergencies under the new spending plans.