Heathrow Airport criticised as “flawed” a report that says it will rake in billions of pounds in charges to airlines while attracting fewer passengers if fees are increased.
The airport is locked in an argument with British Airways and Virgin, two of the world's largest airlines, over plans to increase charges in the summer.
Heathrow also called the airline-commissioned study, which concluded that higher airport charges would result in fewer passengers, as "embarrassing".
The report, by consultancy WPI Economics, said Heathrow will receive an "unjustified" £5 billion ($6.11 billion) over the next four years if the proposed increase in charges is approved.
"This 'analysis' from airlines is so flawed it is embarrassing,” a Heathrow spokesman said.
"Airlines appear less interested in giving passengers a reliable journey at the airport, and more interested in protecting their own profits,” he said.
"Airlines set fares to what the market will bear, and consumers will have seen fares rise by up to 100 per cent already as airlines try to recover Covid losses.
"The increase in airport charges that guarantees a good service will reduce airline margins slightly, but have no impact on consumer prices."
Heathrow said it will use the fees to invest and ensure flights take off safely and on time.
The Civil Aviation Authority is expected this summer to announce a five-year cap on the airport's charges.
It has given Heathrow permission to raise fees by more than 50 per cent on January 1 as an interim measure. Charges are paid by airlines but are generally passed on to passengers in air fares.
Virgin Atlantic boss Shai Weiss said: "Already the most expensive airport in Europe, Heathrow is abusing its monopoly position to fleece passengers and undermine the competitiveness of global Britain, all to deliver excessive returns to its shareholders."
The WPI Economics report, led by former Treasury official Matthew Oakley, said Heathrow's proposal to increase fees by a "disproportionate 117 per cent" will lead to charges being "at least £5 billion more than needed".
The report said that raising fees will lead to significantly fewer passengers using the airport.
The report accused Heathrow of:
- Overestimating future operating costs by £750 million;
- Underestimating future commercial revenue by £1 billion;
- Underestimating passenger numbers, leading to a £200 million cost;
- Overstating the rate of return needed to raise investment, leading to increased costs of "as much as £3 billion".
The report was commissioned by British Airways, Virgin Atlantic and airline trade organisation Iata, the International Air Transport Association.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
UAE players with central contracts
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
The specs
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Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
