Airlines and hotels are urging a reform of Heathrow Airport's funding model, claiming it results in the highest charges in the world, potentially jeopardizing the proposed third runway. Key stakeholders, including Surinder Arora of the Arora group, highlight significant cost discrepancies, indicating monopolistic practices that inflate expenses for airlines and hotels alike. High operational costs not only discourage expansion but also burden consumers. The CAA's willingness to review these regulations could determine the future of Heathrow's expansion plans, as businesses demand a more sustainable economic framework for continued investment.
Surinder Arora is the chair of the Arora group, which owns 16 hotels and lots of land around the airport. He expressed his support for expansion but expressed doubts about whether it would happen due to excessive charges. For instance, hotels near the airport face exorbitant costs, such as 23.27p a unit for water compared to 2.62p just outside the boundary. Such overpricing directly impacts customer rates and casts doubt on the viability of future expansions.
Heathrow's current funding model has drawn significant criticism for making it the most expensive airport globally, leading businesses to call for a review before investing in a third runway. There’s a prevalent sentiment that without changes, this expansion will remain unfeasible, which fundamentally hinges on the regulatory framework set by the CAA.
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