Walsh calls for ‘swift increases at Gatwick and Luton’ amid Heathrow charge warning
January 30, 2025
The UK government’s backing for increased airport capacity has been welcomed by the airline industry, but International Air Transport Association (IATA) chief Willie Walsh has urged regulators to prioritise cost control at Heathrow while seizing expansion opportunities at Gatwick and Luton.
Following a speech by Chancellor Rachel Reeves confirming government support for boosting the UK’s aviation capacity, IATA issued a statement warning against rising charges at Heathrow.
“The UK’s global position economically and socially will benefit if additional airport capacity is provided in the Southeast,” said Walsh, IATA’s Director General. “The opportunities for relatively swift increases at Gatwick and Luton should be seized.”
However, Walsh cautioned that Heathrow’s declining status was driven not by capacity constraints, but by its high charges. “Its charges remain among the highest in the world. To bolster UK competitiveness, it is vital that charges are reduced and not increased further. This means ensuring that today’s airline users are not saddled with costs that should be borne by the airport’s shareholders and the eventual users of new capacity.”
He accused Heathrow of “gold-plating” construction costs in the past and warned that regulators must take a tougher stance on cost and efficiency as the airport looks to future expansion. “Regulators will need to be extremely firm on cost and efficiency matters, especially as environmental and economic barriers to expansion are also formidable. Unfortunately, past performance gives airlines little confidence in this area.”
Walsh also called for more immediate measures to improve the UK’s aviation competitiveness, including cutting Air Passenger Duty (APD) and the Electronic Travel Authorisation (ETA) visa waiver charge. He also urged the government to introduce stronger incentives for cheaper sustainable aviation fuels.
