British Airways’ parent company has warned it would not support Heathrow expansion without an overhaul of how passenger fees are set.
International Airlines Group (IAG) chief executive Luis Gallego said the regulatory model used to determine the west London airport’s charges is “not fit for purpose”.
He made the comments amid speculation Chancellor Rachel Reeves is preparing to back the building of a third runway at Heathrow.
Speaking at an event held by trade association Airlines UK in central London, Mr Gallego said: “I think the regulatory model that we have is not fit for purpose.
“All the investments in Heathrow are too high and in the end we transfer that to the customers.
“As a consequence of that, Heathrow is the most expensive airport in the world but the experiences of customers are not comparable to other places.
“So we want to develop Heathrow and we support the development if we have the right regulatory model.”
Asked if IAG would not support expansion if the current regulatory model remains, he replied: “Yes.”
Regulatory the Civil Aviation Authority (CAA) determines the cap on per passenger charges that airlines must pay to Heathrow.
Heathrow and the CAA were approached for a comment.
