Airlines united over demands to improve ‘negative’ Heathrow experience

Airlines have criticised negative passenger experiences at Heathrow Airport , quoting long security lines and baggage system failures as key concerns over future expansion plans . They warned that future investments were being stifled, raising concerns over the London airport's third runway plans . The airlines also said they believe its effectiveness as a hub airport is hampered by the way it is run. About 90 per cent of respondents to a survey of 50 airlines which use the airport agreed with the assertion. The standard of services and a lack of engagement were among the reasons quoted by airlines for why they believe Heathrow's capability is hindered. The regulatory asset base (RAB) model used at Heathrow allows it to charge fees to airlines based on infrastructure improvement plans agreed with the Civil Aviation Authority and permitted rates of return for investors. Heathrow's Airline Operators Committee (AOC), which represents the airport’s airlines and commissioned the research, said it shows a third runway would be “unaffordable” under the current system. Nigel Wicking, chief executive of Heathrow AOC, said: “Instead of being a source of national pride, Heathrow has failed to modernise and in turn, lets down consumers, carriers and the British economy. Heathrow Airport Limited’s substantial market power has, for too long, given it an incentive to spend inefficiently and meant that it has acted against the interest of both consumers and airlines.” In response, the airport said it agrees that “adjustments to the regulatory model are needed”, but insisted “airlines and passengers get good value for money”. More than two out of three (67 per cent) airlines agreed that the airport’s operation stifles their ability to increase investment. About 60 per cent of respondents believe Heathrow's service levels inside terminals are worse than at other major airports, with claims of long security lines, baggage system failures and poor treatment of passengers with restricted mobility. Heathrow recorded a 6 per cent rise in the number of passengers travelling through its four terminals last year, to 83.9 million. Chancellor Rachel Reeves gave her backing for Heathrow's third runway project in a speech on growth in January. The airport responded by saying it would submit detailed plans to the Government in the summer. The cost of the project was estimated at £14 billion in 2014, but this is likely to have risen sharply. Heathrow's AOC is part of the Heathrow Reimagined campaign, which is calling on the CAA to reform how the airport is regulated. Among the other organisations represented by the body are British Airways owner International Airlines Group (IAG), Virgin Atlantic and tycoon Surinder Arora, who operates a number of hotels serving the airport. The campaign claims Heathrow is the world’s most expensive airport for charges, with airlines paying £1.1 billion more each year than if fees were in line with equivalent major European airports. Airlines typically pass charges on to passengers through fares. Mr Wicking said the results of the survey reflect “the performance challenges airlines have day to day at Heathrow”. He said: “When you look at that relative to the amount we spend at Heathrow, something’s going wrong. “We’re spending a lot of money. It is the most expensive airport for charges, and yet the quality of service keeps on dropping, whether that’s loss of bags, congestion or lack of availability of check-in space.” He said New York’s JFK airport offers a “far better experience” because it has refreshed all its terminals within a 27-year period, whereas at Heathrow, Terminal 3 is more than 60 years old and Terminal 4 is nearly 40 years old. Mr Wicking said: “They’ve realised what they’re sitting on in terms of the asset that is Heathrow, and with the regulatory model they’ve worked out how to make really good money. “If they can get money on to the RAB – if they get capital spend – they will have a really good return on that capital spend, which is obviously very attractive to their shareholders but it doesn’t drive efficiency. “Whenever I see another capital plan coming across my table for Heathrow to invest in, I just look to the skies and think ‘where do you get these numbers from’ because some of them are absolutely ludicrous.” He added: “The [airlines] do want expansion but it cannot be at any price. The current price is already too much. If you extrapolate that to the kind of spend we’re talking about for a third runway and terminals, it would just make it unaffordable.” Heathrow reported pre-tax profits of £917 million for last year, up 31 per cent from £701 million in 2023. In December 2024, French company Ardian completed a deal to become Heathrow's largest shareholder with a 23 per cent stake, while Saudi Arabia’s sovereign wealth fund purchased a 15 per cent share. Mr Arora claimed Heathrow bosses “take advantage of the monopoly” position as the UK’s only major hub airport. He gave examples – disputed by Heathrow – of the airport charging airlines £76,000 to remove three trees, spending £1.1 million on a smoking shelter at Terminal 4, and charging more than half a million each for two disabled toilets. He said: “We are 110 per cent behind the Chancellor and the government for expansion, for growth, except just a couple of caveats. We must do it for the right reasons, and we must do it for the benefit of the nation, and not for the benefit of lining the shareholders’ pockets. “We must make sure that we get value for money.” A representative for Heathrow said: “Every penny invested in infrastructure at Heathrow is approved by airlines and our regulator. “We agree adjustments to the regulatory model are needed to deliver a third runway, but airlines and passengers get good value for money at Heathrow. “Our operational performance is good and improving, and the value we provide to airlines and passengers is easily seen by how many airlines want to include Heathrow in their network. “Expanding Heathrow will drive a further step change and address many of the challenges identified with operating an airport that is already at full capacity.”

Airlines united over demands to improve ‘negative’ Heathrow experience

Group of 50 airlines believe the way the London airport is run impacts its effectiveness as a hub