LONDON, April 1 London's Heathrow said on
Tuesday it would accept a decision by the regulator to impose a
cap on the prices Britain's biggest airport can charge airlines,
adding it did not expect other parties to appeal the ruling
Heathrow had warned in January that it could struggle to
grow its business after the Civil Aviation Authority (CAA) ruled
prices must be set at 1.5 percent below inflation from April
2014 after finding that the airport - Europe's busiest - had too
much market power.
"We are focussed on delivering our business plan for the
period from 2014-18 and further improving Heathrow for
passengers," the airport said in a brief statement.
Heathrow, which has expanded in recent years with Terminal 5
and the redevelopment of Terminal 2, had said it might appeal
the cap, which was much lower than expected for the next five
The airport said it would result in a rate of return on
capital investment of an "unsustainable" level of 5.35 percent
compared with the 6.7 percent it was seeking.
Heathrow had said the lower prices would result in a cut to
operational expenditure of more than 600 million pounds and the
need to increase commercial revenue targets by more than 100
million pounds by increasing retail and car park charges.
Airlines, however, had said the move did not go far enough
as the hub still had some of the most expensive charges in the
(Reporting by Lavinia De Luca, Editing by Paul Sandle)