New campaign demands a "fundamental" review of Heathrow’s regulatory framework

A consortium of representative bodies and airlines is urging the UK Civil Aviation Authority (CAA) to conduct a fundamental review into the regulatory framework of Heathrow Airport.

The Heathrow Airline Operators’ Committee (Heathrow AOC), Arora Group, International Airlines Group (IAG), and Virgin Atlantic have come together to launch the “Heathrow Reimagined: A Better Hub for Britain” campaign, which aims to work with industry, government and the CAA to achieve reform.

The campaign argues that Heathrow Airport Limited’s market position has led to spending inefficiently, meaning the airport has acted against the interest of both consumers and airlines. Heathrow Reimagined represents the first time these parties have come together, as they believe the airport is not “fit for purpose”. 

It has been 15 years since the last major review into UK aviation by the country’s Competition Commission.

“Heathrow has become the world’s most expensive airport,” said a statement from Heathrow Reimagined. “With passengers and airlines today paying £1.1bn ($1.36bn) more each year than if charges were in line with equivalent major European airports.”

As part of its submission, Heathrow Reimagined states alternative international hubs have managed to stimulate growth, including new terminals at Barcelona, Frankfurt, Madrid and Munich all costing half or less, when adjusting for terminal size, than the upgrades to Heathrow Terminals 2 and 5.

“As an international airline group, we compare the experience for passengers at Heathrow with other airports, and the experience does not match the cost,” said Luis Gallego, CEO of IAG.

“We would like to work with the industry, the government and the CAA and recommend an urgent review into the regulatory system at Heathrow, to improve the affordability and experience for travellers, so that it can become a leading global airport once again,” he added.

Both Heathrow AOC and the Arora Group both highlighted a significant decline in the airport’s operating standards over recent years. Additionally, Virgin Atlantic CEO, Shai Weiss commented: “Despite having the highest passenger charges in the world, Heathrow is failing consumers, airlines and the UK economy.”

The campaign is aiming to engage with the wider industry and government to achieve its primary objective of fundamental reform that will align with the UK government’s growth agenda.

During 2024, 83.9 million passengers travelled through Heathrow. That is 4.7 million more than in 2023 and three million more than the previous annual record, set in 2019.