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IAG response to Transport Select Committee Report on Heathrow Expansion

International Airlines Group (IAG) welcomes the Transport Select Committee's report into Heathrow expansion and its focus on cost control.

Willie Walsh, IAG's chief executive, said: "Heathrow is the world's most expensive hub airport and its current costs proposal is exorbitant and unacceptably vague.

"The Transport Select Committee's conclusion that airport charges must be kept at today's levels, as this is in customers' interests, is very welcome.

"It's critical, as recommended, that the National Policy Statement includes a detailed cost breakdown with the condition that airport charges be held flat in real terms, before Parliament votes on it. Also, we endorse that the Civil Aviation Authority (CAA) should test whether the scheme is affordable before it can proceed.

"We agree that the Department for Transport should look at giving the CAA additional powers to control costs and regulate airport charges effectively. We believe that the way to drive costs down is by introducing competition within Heathrow and the CAA must have the power to let this happen.

"We share the Committee's concerns about the lack of detail on how the new runway will bridge the M25, one of Europe's busiest motorways, and the fact that no costs have been factored in for this. "Finally, we're pleased that the Committee has acknowledged that domestic routes are based on airlines' commercial considerations. It notes that they've declined in recent years and that this won't change if airport charges increase."


March 23, 2018                                                                                                                                       IAG11