IAG Wants Heathrow Monopoly Broken Up

British Airways parent IAG has urged the UK government to cap the cost of expansion at London’s Heathrow Airport and wants the airport’s terminals to be run by separate companies to encourage competition.

In a submission to the UK aviation regulator, the CAA, IAG says Heathrow expansion “provides a great opportunity for independent companies to design, build and run commercial facilities like terminals.”

It said competition would provide better facilities at a lower cost and limit charges that would be passed on to airport customers. Better financing options would also be available with lower risk.

“Heathrow’s had it too good for too long and the Government must confirm the CAA’s powers to introduce this type of competition,” IAG’s chief executive Willie Walsh said.

“This is not rocket science. Most major US airports have terminals owned or leased by airlines and there are European examples at Frankfurt and Munich airports. There’s absolutely no reason why this cannot happen at Heathrow.”

Heathrow started a ten week consultation process in January on the location and size of a third runway and associated infrastructure.

The UK parliament is expected to vote in the first half of the year on a national policy statement setting out a framework for Heathrow’s final expansion plan.