1. ITV Report

Gatwick price hikes: The full story

Photo: PA

Gatwick Airport today announced major investment plans but passenger fees will rise to pay for it.

An extra £1 billion will be spent by the end of the decade under plans just announced.

The airport is also calling an end to it being regulated. It says it is unnecessary and money saved by the process would reduce the amount passengers pay to use the airport. It currently has to agree feed and quality targets with the CAA in a complex process.

The current charge is £8.80 per passenger. Gatwick say this will rise to £11.45 by 2018 if regulation continues. But it says without regulation the fee will be just £10.68 in 2020.

The airport will now consult with airlines and says it wants a "legally-binding commitment to maintain and improve service standards at the airport, together with the option of entering contractual relationships tailored ."

Stewart Wingate, Gatwick’s Chief Executive Officer, said: “Competition is by far the best mechanism for promoting the interests of passengers. It is the very reason why the Competition Commission took the decision to break up the BAA monopoly and why Gatwick is now thriving under separate ownership.

“Our proposed new deal for Gatwick moves that competition judgement on further and is a better deal for airlines and their passengers than a regulatory outcome. Free from regulation, we would be able to respond more quickly to the changing needs of airlines and their passengers and we would be able to step up the pace of improvement in the passenger experience. The deal means airlines and passengers win on price, service and the quality of facilities.

“A decision to allow competition, rather than regulation, to protect the interests of passengers would be, in my view, the most important step the CAA could take when it considers this plan.”

Competition in London and the South East is set to increase and so it is critical that Gatwick be able to continue improving the quality of its service offering. Gatwick is therefore proposing to put forward an investment of a further £1 billion in the airport between 2014 and 2019 to build on the improvements delivered to passengers over the past three years.

The additional £1 billion investment would enable Gatwick to continue creating the right facilities for passengers and airlines and to deliver an improved passenger experience at every step of the airport journey. Examples of where this investment will be made include:

Continued transformation of our check-in areas in partnership with our airlines to reduce queues and deliver a smoother experience.A new state-of-the-art security area in North Terminal which will make use of the same award-winning technology processes and customer service introduced in Gatwick’s £45 million South Terminal security area opened in 2011.Redevelopment of Pier 1 – the UK’s oldest pier – will see the existing pier demolished and a two-storey replacement built. Facilities will include a new baggage system, allowing passengers to use automated fast-bag drops, and new gate rooms linked to five new aircraft stands by air bridges. Airlines will also have the option to offer ‘day before’ check-in, through a new automated bag store system.Extension of Pier 6 to provide a world-class, 95% pier service – a key requirement for passengers. The project will also increase the number of A380 stands.Continued partnering with UKBF to improve immigration queues and the overall passenger experience following work already progressed to make facilities in South Terminal lighter, brighter and with an improved layout.regulater the Civial Aviaion Authority.

Stewart Wingate, Gatwick’s Chief Executive Officer, said: “Competition is by far the best mechanism for promoting the interests of passengers. It is the very reason why the Competition Commission took the decision to break up the BAA monopoly and why Gatwick is now thriving under separate ownership.

“Our proposed new deal for Gatwick moves that competition judgement on further and is a better deal for airlines and their passengers than a regulatory outcome. Free from regulation, we would be able to respond more quickly to the changing needs of airlines and their passengers and we would be able to step up the pace of improvement in the passenger experience. The deal means airlines and passengers win on price, service and the quality of facilities.

“A decision to allow competition, rather than regulation, to protect the interests of passengers would be, in my view, the most important step the CAA could take when it considers this plan.”

Competition in London and the South East is set to increase and so it is critical that Gatwick be able to continue improving the quality of its service offering.

Gatwick is therefore proposing to put forward an investment of a further £1 billion in the airport between 2014 and 2019 to build on the improvements delivered to passengers over the past three years.

Gatwick say the additional £1 billion investment would enable It to continue creating the right facilities for passengers and airlines and to deliver an improved passenger experience at every step of the airport journey. Examples of where this investment will be made include:

Continued transformation of check-in areas in partnership with airlines to reduce queues and deliver a smoother experience.

A new state-of-the-art security area in North Terminal which will make use of the same technology processes and customer service introduced in Gatwick’s £45 million South Terminal security area opened in 2011.

Redevelopment of Pier 1 – the UK’s oldest pier – will see the existing pier demolished and a two-storey replacement built.

Facilities will include a new baggage system, allowing passengers to use automated fast-bag drops, and new gate rooms linked to five new aircraft stands by air bridges.

Airlines will also have the option to offer ‘day before’ check-in, through a new automated bag store system.

Extension of Pier 6 to provide a world-class, 95% pier service – a key requirement for passengers. The project will also increase the number of A380 stands.

Continued partnering with UK Border Force to improve immigration queues and the overall passenger experience following work already progressed to make facilities in South Terminal lighter, brighter and with an improved layout.