Air Transport Association Head Criticises Heathrow, CAA
Iata (International Air Transport Association) head Giovanni Bisignani referred on Monday June 2nd to the levels of service provided at London Heathrow Airport as a “national embarrassment.”
Heathrow Airport Charges
Bisignani simultaneously criticised the CAA (Civil Aviation Authority) in relation to Heathrow, highlighting how it was permitting charges at the UK’s flagship airport to rise by 86 per cent over the coming five years.
These kinds of increases, he stated, could only take place in what he deemed “monopoly-land.”
The CAA attributed the charges to the need to modernise Heathrow. Airport owner BAA, meanwhile, stated that it was looking to invest four billion pounds in the site.
"The CAA agrees that passengers and airlines deserve better service than BAA has provided hitherto, which is why the CAA has put in place tougher service standards and greater financial penalties if BAA fails to deliver," the CAA stated.
"For example, BAA will have to pay back one-point-two million pounds to Heathrow airlines for its poor service performance in April this year."
Better Passenger Experience
BAA detailed its commitment to providing a better passenger experience, commenting: "Over the next five years BAA will be investing over four billion pounds to improve and transform Heathrow's facilities.
"The vast majority of this will be spent on improving existing terminals and that will mean faster check-in, improved security, better baggage connections, and superior terminal facilities."
Airline Industry 2008
Iata recently issued a downbeat warning on the airline industry’s 2008 prospects, after having previously forecast profits to come. Replacing the $4.5 billion profit anticipated, it now says that losses of $2.3 billion will likely occur.
Among the factors to which the reversal of fortune is attributed are escalating fuel costs, as well as a weakening worldwide economy. Additionally, says Iata, issues are arising from the fact that airlines had ordered aircraft during a healthy period, but these are now being delivered in less rosy times.
Speaking to the BBC, Mr Bisignani predicted more airlines going out of business than have done so already.
"That's why we think that governments, partners and trade unions must understand it's a wake-up call, an emergency situation and things must change very quickly in order to be able to survive in a profitable way", he stated.
Source – Airport International’s London Reporter
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