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United Kingdom Exceptional Regulatory Charge (R1)

United Kingdom Exceptional Regulatory Charge (R1)

Old Feb 7, 21, 10:58 am
  #1  
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New LHR tax/charge #TAX-R1# GBP 8.90 ?

Just re-booking some LX and LH flights and noticed a difference in taxes/fees

LX has
#TAX-R1# 1 GBP 8.90
LH similar
R1XX 8.90 GBP

Only seems to appear ex LHR, not on LCY. I have tried googling / searching the FT forums, but could not find anything.

Anyone any idea? Brexit ? Covid?
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Old Feb 7, 21, 11:58 am
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This is likely a new charge by Swiss, which is for their own profit.
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Old Feb 7, 21, 1:11 pm
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Originally Posted by warakorn View Post
This is likely a new charge by Swiss, which is for their own profit.
It doesn't appear to be. BA are charging it as well it seems.

ITA calls it "United Kingdom Exceptional Regulatory Charge (R1)".
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Old Feb 7, 21, 1:14 pm
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United Kingdom Exceptional Regulatory Charge (R1)

Anyone know what this new tax for £8.90 is? Seems to have popped up on ex-LHR bookings, but not ex-LCY bookings. Was highlighted over on the Swiss forum, but seems to apply to BA flights too. Given the abundance of experts here, far more likely to get the best answer here! Mods, please do move/close if more appropriate elsewhere.
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Old Feb 7, 21, 2:28 pm
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Hi,

There is a debate going on as to whether Heathrow can increase its passenger charges to cover its covid losses

https://www.airportwatch.org.uk/2021...-covid-losses/.

The CAA has rejected LHR's request to raise charges by £2.8bn but that consultations are ongoing.

If this is related I woud have thought that the fee would not be applied.

Something to keep an eye out going forward and might be worth asking BA.

Regards

TBS
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Old Feb 7, 21, 2:36 pm
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It does seem a smidge deceptive to label it as a "United Kingdom" charge, if it's actually levied by Heathrow themselves. If that is what it is (they're denying all knowledge of it on Twitter).
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Old Feb 7, 21, 2:42 pm
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It's for your 10 days in a Holiday Inn?
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Old Feb 7, 21, 3:26 pm
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What is BA's response (or LX for those on an LX-issued e-ticket)? Would seem to be the best place to ask who is levying it.
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Old Feb 7, 21, 4:25 pm
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Is this maybe to do with recovering costs already incurred on preparatory work for Runway 3 (the 'Cat B' costs)?
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Old Feb 7, 21, 5:42 pm
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These extra charges just annoy me. I know theyíve been affected due to COVID - but who hasnít!!

I did notice the price of flights had gone up a bit the last few days (£5-£10). I know itís not much but itís the principle of LHR charging extra all the time.

If BA do permanently pull LGW SH, this will mean fewer bargain fares and more fares driven by LHR taxes.
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Old Feb 7, 21, 6:21 pm
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Originally Posted by BAeuro View Post
These extra charges just annoy me. I know theyíve been affected due to COVID - but who hasnít!!

I did notice the price of flights had gone up a bit the last few days (£5-£10). I know itís not much but itís the principle of LHR charging extra all the time.

If BA do permanently pull LGW SH, this will mean fewer bargain fares and more fares driven by LHR taxes.
This is how insane this has got. Airport charges are not taxes. They're price of doing business. Ryanair's biggest win was convincing the market airports should be (almost) free at point of use and the missing money recovered from elsewhere. Hence pay to drop off, fees for airport development at security (NQY), £3 for a 70p bottle of water when airside. LHR facilities are way better than LGW because the market will pay more. LGW has to undercut LHR by some way to offset the lack of premiun traffic willing to fly from there. But to suggest that paying for taxiways, runways and terminals is somehow an unfair "tax" is bonkers on stilts.
If a tenner more an airfare is a deal breaker you shouldn't be flying at all.
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Old Feb 7, 21, 6:21 pm
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Originally Posted by BAeuro View Post

If BA do permanently pull LGW SH, this will mean fewer bargain fares and more fares driven by LHR taxes.
Don't use BA LHR then.
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Old Feb 7, 21, 7:18 pm
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Originally Posted by skipness1E View Post
This is how insane this has got. Airport charges are not taxes. They're price of doing business. Ryanair's biggest win was convincing the market airports should be (almost) free at point of use and the missing money recovered from elsewhere. Hence pay to drop off, fees for airport development at security (NQY), £3 for a 70p bottle of water when airside. LHR facilities are way better than LGW because the market will pay more. LGW has to undercut LHR by some way to offset the lack of premiun traffic willing to fly from there. But to suggest that paying for taxiways, runways and terminals is somehow an unfair "tax" is bonkers on stilts.
If a tenner more an airfare is a deal breaker you shouldn't be flying at all.
I would disagree with a few points there.

Not all airports charge these Ďtaxesí, so they arenít a fundamental business strategy which keeps every airport afloat.

Also, I donít believe the ĎLHR facilities are way betterí. Ok T5 and T2 are nice and modern, but T3 and T4! Theyíre not premium terminals and I would argue theyíre worse than Gatwick. The South Terminal at LGW is perfectly nice and I donít see what facilities it doesnít provide.

And yes, £10 may not be much on a £2000 ticket, but on a HBO domestic ticket it can be a fair proportion. BA are trying to compete with easyJet on short haul by lowering fares, so Iím sure they arenít overly pleased either. WW and IAG have slated LHRs charges many times before - it is known that they charge airlines/passengers a premium.
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Old Feb 7, 21, 7:21 pm
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Originally Posted by HIDDY View Post
Don't use BA LHR then.
I will, because LHR is a lot more convenient from where I live and I donít want to use LCCs.

£10 extra isnít a deal breaker at all for me - but that doesnít mean I have to like it and agree with it.
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Old Feb 7, 21, 11:29 pm
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Appears to add $24.20 USD on a RT flight connecting thru LHR. Just another reason to bypass London. The APD has limited a lot of stopover traffic. London is a great city, but LHR is a mess.
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