Air Transport World

BAA to hike LHR, LGW charges more than 20%.(FINANCIAL RESULTS, NEW DEALS, AND REPORTS FROM EVERY CORNER OF THE GLOBE)(London Heathrow Airport)(London Gatwick Airport )(Brief article)

UK CAA is permitting BAA to raise charges at London Heathrow and Gatwick by more than 20% for the coming year. In its final decision on price controls at LHR and LGW for the five years through March 31, 2013, CAA is boosting the price cap at LHR by [pounds sterling]2.44 ($4.92), or 23.5% in real terms, to [pounds sterling]12.80 per passenger for the year beginning April 1, 2008. Charges in the four subsequent years could rise by 7.5% per year above inflation. At LGW, the price cap is set at [pounds sterling]6.79 per passenger in 2008-09, a 21% increase in real terms from the current cap. Charges in the next four years are allowed to increase 2% above inflation annually. …

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