Heathrow airport faces fresh calls to increase competition between airlines
Heathrow airport has come under fresh pressure to increase competition between airlines, amid concerns over a monopoly by British Airways owner International Airlines Group (IAG).
A survey has suggested 57 per cent of British travellers support more choice of airline at Heathrow, one day after the transport secretary backed calls for greater competition.
Read more: Virgin Atlantic ups IAG war with teaser for new routes at Heathrow
Heathrow currently allocates more than half of its take-off and landing slots to IAG. The next largest groups are Lufthansa and Virgin Atlantic, with eight per cent and seven per cent of Heathrow slots respectively.
The findings follow research published last month, which suggested Heathrow was running 77 routes on which IAG held a monopoly. Both reports were commissioned by Virgin Atlantic.
Rules which govern slots at the airport are being reviewed by the government as part of its aviation strategy, as the airport presses on with ambitious expansion plans which could have a third runway in place by 2026.
When pressed on the issue yesterday, transport secretary Grant Shapps said it is “incredibly important” to open up competition at the airport.
He said: “It [Heathrow] is of course dominated in no small part by a very small number of airlines, and one in particular.
“And I do think it is important that that is opened up for the purposes of competition apart from anything else.”
Shai Weiss, Virgin Atlantic chief executive, suggested his firm should be given more capacity at the airport. He added: “It’s crystal clear that the British public wants more choice at Heathrow airport.”
Later today, he is due to outline the airline’s ambition to become the UK’s second flag carrier in a speech in London.
However, an IAG spokesperson hit back, saying Virgin had turned down the opportunity to buy slots in the past. They said the firm “welcomes competition but the facts speak for themselves”.
“Virgin Atlantic’s lack of Heathrow routes is down to its own corporate strategy.
Read more: Virgin boss urges ‘level playing field’ for airlines at expanded Heathrow
“Virgin had the opportunity to increase its slot share at Heathrow to 19.7 per cent by buying slots but it chose not to do so.”
A Heathrow spokesperson said: “One of the main benefits of expanding Heathrow is creating the capacity that will unlock competition amongst airlines, increasing choice and lowering airfares for passengers. Virgin Atlantic’s announcement is the latest signal of why we need to press on with the project.
“But to secure these benefits for passengers, the government needs to reform the current slot allocation system. It must encourage competition and choice amongst all airlines in order to deliver for passengers, as well as promoting sustainable and responsible growth and domestic connectivity with any future regime.”
Main image: Getty