The United Kingdom rejects Heathrow airport’s request to create a pandemic buffer zone

London(Reuters) – Britain’s aviation regulator rejected Heathrow’s request to increase its regulatory asset base of 2.6 billion pounds ($ 3.6 billion), and instead offered the country’s largest airport an adjustment of 300 million pounds to cover losses from the pandemic.

Passenger numbers at Heathrow have fallen over the past year and have remained below previous levels by more than 80% in recent months, a circumstance last seen in the 1970s, bringing its losses to around £ 3 billion.

Therefore, the airport requested the British Civil Aviation Authority CAA(An increase in the organizational base of assets)RAB(For English abbreviation), part of a financing model created by the regulator that maintains an appropriate level of risk and rewards for investors, while setting the prices paid by the passengers.

But the CAA Tuesday claimed to be modified RAB From this size it will not back down in favor of consumers.

The CAA He agreed to a temporary amendment of £ 300m and said the issues raised by Heathrow Airport would be considered as part of the next regulatory deal that goes into effect from January 2022.

“The decision we announced today will catalyze and enable Heathrow Airport to maintain investment and service quality and be proactive in supporting any potential increase in consumer demand later this year,” he said. CAA It is a statement.

Heathrow criticized the show CAA, Indicating that this would undermine investor confidence in UK regulated companies.

“At the very least, he should have immediately reinstated the regulatory consumption policy in line with UK regulatory principles;” a Heathrow spokesperson said in an emailed statement “the temporary amendment is minor.”

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Heathrow is owned by Spain’s Ferrovial Corporation, the Qatar Investment Authority, the China Investment Corporation and other financial investors.

(Dollar = 0.7204 pounds)

(Prepared by Sarah Young, Editing by Kate Holton, translated by Dario Fernandez)

Sacha Woodward

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