American Airlines Adds U.S. Muscle to Heathrow Reform Campaign

American Airlines is throwing its weight behind a new campaign to overhaul how London’s Heathrow Airport is regulated. 

On Monday, the U.S. carrier announced it joined a trade group called Heathrow Reimagined. American is its first airline signatory based outside the United Kingdom.

The campaign was launched on February 10 and brings together a range of organizations that are not natural bedfellows. Other members include British Airways’ parent company IAG, Virgin Atlantic, IATA, and Arora Group. It aims to deliver “urgent and fundamental reform of Heathrow's regulatory model.” 

Earlier this month, the group submitted its “case for change” to the Civil Aviation Authority (CAA) – the UK’s aviation regulator. It is pushing for a review of how the airport is operated before further investment is made to expand the complex. Notably, Heathrow Reimagined is not calling for a delay to a proposed third runway. 

Why Does Heathrow Matter?

American Airlines is the third largest airline operator at Heathrow in terms of total seats. The carrier offered approximately 4.7 million seats in or out of the airport last year alone. While other companies have more flights, American Airlines' use of large widebody aircraft lifts its overall ranking. Other major international players include the Lufthansa Group, Emirates, and United Airlines.

By most metrics, Heathrow is the busiest airport in Europe, and one of the largest international hubs in the world. However, with just two runways, the airport is under pressure. During peak times on an average day, planes can land as often as every 45 seconds.

By comparison, Paris Charles de Gaulle has four runways, while Amsterdam has six. American Airlines’ home and hub in Dallas-Fort Worth has seven.

Heathrow Reimagined claims the airport has faced “years of declining passenger experience and ageing infrastructure… coupled with expansion plans that will see passenger charges rise again.”

The Third Runway Saga

In recent weeks, the decades-long debate about a third runway reached a crescendo. Many UK ministers argue an expansion of Heathrow and other strategic airports could drive the country’s sluggish economic growth and boost tourism. Climate campaigners say the emissions from an expansion would be catastrophic for the environment. Some airlines have backed the plans, while others are hesitant.

At the end of January, the government publicly backed a privately funded third runway. However, there is currently no planning application for its construction and around 1,000 homeowners could be forced to sell their properties to make way for it. Protracted legal disputes and court battles are likely. Even if – or when – approved, the new runway will not open before 2035.

While Heathrow Reimagined says it is not against a third runway in principle, it is calling for a review of broader expenditure and the airport’s operating model.

A spokesperson for the group claimed that Heathrow is “the world’s most expensive airport,” adding that passengers and airlines pay £1.1 billion ($1.39bn) more each year than if charges were closer to equivalent European hubs.

Virgin Atlantic CEO Shai Weiss previously described the situation as "monopolistic" and alleged the airport was abusing its power.

Heathrow’s Improvement Plan

Earlier this month, the airport’s CEO presented plans for “the largest private investment program in Heathrow’s history.”

Thomas Woldbye promised “tangible benefits” will be felt as soon as this year, and said the privately funded, phased expansion would improve resilience and sustainability.

At a time when UK public finances are under extreme strain, the promise of multi-billion investment with no taxpayer exposure is attractive to the government. However, critics – including Heathrow Reimagined – say it will be passengers and airlines who ultimately foot the bill through higher charges. 

Speaking on Monday, Nate Gatten, Chief Government Affairs Officer at American Airlines, said: “Commercial air connectivity between our countries is critical for economic growth. As a major operator at Heathrow representing substantial connectivity between the United Kingdom and the United States of America, we support the objective of Heathrow Reimagined to implement a review, and wholesale reform of the existing and outdated regulatory model.”

Heathrow declined to comment directly on the developments, however it is understood that the airport is currently working with ministers, and airline tenants regarding possible adjustments to the regulatory model.