Gatwick Airport seeks to increase passenger fees by almost 11 percent in the seven years to 2021 as London’s second busiest airport attempts to improve facilities while expanding traffic.
The airport has asked the U.K.’s Civil Aviation Authority to approve a per-passenger price increase to 9.76 pounds ($15.08) in fiscal year 2021, compared with a fee of 8.80 pounds in the 2014 to 2015 financial year, Gatwick said in a statement.
The U.K. regulator sets the maximum amount London’s three largest airports can charge airlines to use their facilities and must approve the spending plans of Heathrow, the city’s largest hub, Gatwick and Stansted. While the fees drive up ticket prices for passengers, they also underpin investment intended to keep the pace with rivals including Paris’s Charles de Gaulle and Frankfurt airports.
“We hope that the CAA will feel sufficiently confident to endorse our deal as the preferred way forward for Gatwick in its October final proposals,” Gatwick Chief Executive Officer Stewart Wingate said in the statement.
The CAA proposed a price cap of the U.K.’s retail price index plus 1 percent for the five-year period starting March 2014 for Gatwick earlier this year. The price commitment issued today equates to RPI plus 1.5 percent over a seven-year period.
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