British Airways has given a cautious welcome to the Civil Aviation Authority’s decision to cap the price increases that Heathrow’s owners can impose to 1.5 per cent below inflation; but says the regulator has not gone far enough to address Heathrow’s excessive charges.

Heathrow Airport Limited had originally applied for permission to hike prices each year by RPI inflation plus 5.6 per cent, later revised down to 4.6 per cent.

BA, and other airlines, made strong representations to the CAA that rather than increase prices, they should in fact be cut considerably.

An airline spokesman said: “The CAA has made a step in the right direction to address the excessive charges levied by Heathrow. However, the fact remains that our customers will still be paying more than is warranted and there is plenty of scope for further efficiencies to be made.

“We want a Heathrow that is efficiently run, fairly rewarded and priced comparably with other airports.”