Virgin Atlantic chief slams Heathrow over charges

Heathrow Airport has become a “de facto monopoly” and the way it is operated is “an abuse of power”, according to Shai Weiss, chief executive of Virgin Atlantic.

Weiss hit out at Heathrow and the Civil Aviation Authority (CAA) over its regulation of the airport’s charges, telling the Airlines 2022 conference in London: “The regulatory framework is broken.

“It must focus on all stakeholders and not just on the profits of Heathrow shareholders.”

He said Virgin Atlantic had withdrawn “unequivocal support” for Heathrow expansion because of the airport’s increased charges, saying: “It is difficult now to support a third runway at Heathrow.

“We would but only if Heathrow remains competitive and does not just enrich its shareholders. If our conditions are met we would support a third runway. But we learned through the pandemic and through the last CAA consultation [on Heathrow charges] to refine our previous unequivocal support [for a third runway].”

Weiss described Heathrow chief executive John Holland-Kaye as “a very good leader” of the airport and said: “We have multiple touchpoints with Heathrow. But there is one big issue.

“He wants to increase Heathrow’s charges by 120% and we did not agree with Heathrow’s cap on volume.”

Also, he said: “We operate from Heathrow Terminal 3 which is 60 years old and requires refurbishment. We fight to get the best service out of what is the most-expensive airport in the world.”

When it was pointed out Virgin Atlantic had moved all its London services to Heathrow and closed its Gatwick operation during the Covid-19 pandemic, Weiss said: “We had to take a decision to move all our flights to Heathrow.

“It tremendously improved our performance. Gatwick is extremely well run. [But] there is no connectivity at Gatwick.

“If there was another gateway airport to the UK, we would consider it. But until there is we are at Heathrow.”

However, Weiss argued: “Why can’t we consider competition on the Heathrow campus? Why can’t there be some terminals operated by Heathrow and some by others like us?”

He noted Virgin Atlantic would be unlikely to fly from more UK airports than it does at present – Heathrow, Manchester and Edinburgh.

Weiss explained: “Long haul is a network business. Regional airports don’t always support long haul. It’s not likely Virgin Atlantic would go beyond the airports it operates to now.”

But he added: “We have an aim to partner with anyone who flies into Manchester or Edinburgh.”

Aviation minister Baroness Vere defended the CAA, saying: “The CAA runs an independent process and there is ample opportunity for consultation.

“I would also point out there is a review of the CAA and there will be a consultation.”