Heathrow Airport, which is the busiest airport in Britain, announced on Wednesday that it has lodged an appeal against a ruling made by the airport regulator that it must decrease the fees it

charges airlines from 2024 to 2026.

The Competition and Markets Authority, the UK's competition watchdog, will now assess whether the appeal has grounds to proceed. This is the latest development in an ongoing and contentious dispute between the airport and its largest airlines, including British Airways and Virgin Atlantic, both owned by IAG.

In March, the Civil Aviation Authority (CAA) instructed Heathrow to reduce its fees over the next two years, which was seen as a victory for airlines that have long criticized the high charges at the airport. However, Heathrow contends that it requires higher fees to maintain its services, generate returns for shareholders, and fund investments.

Heathrow stated in a press release, "We believe the CAA has once again focused on driving down charges to airlines, which will not be passed on to passengers, and is undermining the investment needed to deliver the airport service and resilience consumers want."

Airlines are also anticipated to challenge the CAA's decision since they believe that, even with the proposed fee reduction, Heathrow remains one of the most expensive airports in the world.

Heathrow is owned by Spanish firm Ferrovial FER.MC, Qatar Investment Authority, and other financial investors. Photo by Ed Webster, Wikimedia commons.