Heathrow Airport: 'Change funding or third runway won't happen'
Published On Feb 14, 2025, 1:03 AM
Businesses and airlines are urging for reforms to Heathrow Airport's funding model, claiming it makes Heathrow the most expensive airport in the world. They argue that current regulations set by the Civil Aviation Authority (CAA) allow Heathrow to overcharge for services, which could hinder plans for a proposed third runway. Without changes, they believe the £62 billion expansion won't succeed. The CAA is considering these requests for review, but the airport management insists that investments are necessary for growth and consumer benefits.
Stock Forecasts
IAG
Negative
Heathrow's expensive pricing may deter airlines and travelers, leading to potential decline in airport traffic. The inability to launch the third runway without regulatory reforms could hurt the airport's profitability in the long run.
BA
Negative
If regulations are not changed, airline and consumer dissatisfaction may rise, leading to stock price instability for airport-related service providers and associated industries.
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