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UK: British Airways owner calls for breaking up Heathrow monopoly

 |  February 5, 2018

British Airways’ owner, International Airlines Group (IAG), has called on government to break up Heathrow’s “monopoly” of infrastructure, suggesting that other companies could run the different terminals to create competition and cheaper flights for consumers.

IAG said the airport’s planned expansion could allow independent firms to create and run new terminals more effectively than Heathrow’s current owners, with lower costs to airlines.

The proposal from IAG, Heathrow’s dominant customer, to the regulator, the Civil Aviation Authority (CAA), is the latest salvo in its battle to ensure that charges remain low when a third runway is built. IAG argues that fares could be driven up by escalating expenses, but that breaking up Heathrow could lower this risk.

“Heathrow’s had it too good for too long and the government must confirm the CAA’s powers to introduce this type of competition,” said Willie Walsh, IAG chief executive. “This would cut costs, diversify funding and ensure developments are completed on time, leading to a win-win for customers.”

Full Content: Reuters

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