British Airways chief Willie Walsh: Sack Heathrow boss over rip-off charges

 
Expansion: Heathrow Airport
Steve Parsons/PA Wire

British Airways chief Willie Walsh today called on the boss of “inefficient” Heathrow to be sacked in an extraordinary clash over landing charges.

Mr Walsh, who heads BA’s parent company IAG, said the airport was “ripping off passengers” through excessive fees for airlines that have to be passed on to passengers in fares.

Heathrow has asked aviation regulator the CAA for an increase in charges by two per cent above the rate of inflation each year from next April, adding up to £27 to the price of a ticket.

Mr Walsh said: “Heathrow is ripping off passengers, it’s inefficient, and it’s been grossly over-rewarded by the CAA.”

The CAA initially proposed that from next year charges should be capped at 1.3 per cent below the Retail Prices Index. That would still see passengers paying an extra £600 million over the five years. But industry figures suggest the CAA could bend to the airport’s demands when it announces its final decision next week. Heathrow chief executive Colin Matthews has warned that if the CAA does not agree the rise in charges demanded, it will drop £1 billion of investments such as plans to improve baggage facilities.

But Mr Walsh said the threat was “pathetic”, adding: “If Colin Matthews is incapable of running the airport and ... requires excessive [charges] to justify investment, then he should be replaced.” He claimed the airport was badly-run and over-staffed and that its management were over-paid.

He also said Heathrow — whose owners include Qatari, Chinese and Singapore sovereign wealth funds — was using passengers as “cash cows”.

A Heathrow spokeswoman, said: “We have put forward plans for more than £400 million of cost savings over the next five years. We want to continue the investment that has been improving Heathrow for passengers.

“Airlines’ proposals for 40 per cent price cuts can’t be achieved without risking under-investment and a return to the out-dated Heathrow of the past.”

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