Heathrow to appeal against price cap cut

London's Heathrow Airport has launched an appeal against a decision that it must reduce charges for airlines.

A spokesman for the airport, based in the west of the capital, accused the Civil Aviation Authority (CAA) of “undermining” the investment needed to improve the facility.

The CAA in February said the cap on Heathrow’s average charge per passenger must be cut and last year, to £25.43 over the next three years from from £31.57.

“When current shareholders bought Heathrow in 2006, the UK’s hub airport was suffering from years of under-investment as airlines drove down airport charges. Consumers bore the brunt of this through poor service," Heathrow said in a statement.

“Since then, we have made it our mission to transform Heathrow into one of the best airports in the world, supported by £11bn of private investment.

“We believe the CAA has once again focused on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport service and resilience consumers want."

Reporting by Frank Prenesti for Sharecast.com