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London's Ultra Low Emission Zone, or ULEZ, is expanding to encompass all of Greater London, including Heathrow Airport, from the 29 August 2023.
The initiative, implemented by Transport for London (TfL), is aimed at reducing air pollution in London, therefore all vehicles entering the airport must meet certain emissions standards in order to avoid paying a daily charge.
The daily charge for non-compliant vehicles is £12.50 for most vehicles, including cars, vans, and motorcycles.
The charge will be in addition to any other fees or charges associated with entering the airport. The charge only applies when a vehicle is driven within the ULEZ zone, and does not apply to stationary vehicles including when cars are parked at Heathrow.
Please note, if you have booked Meet & Greet or Valet Parking with a non-compliant vehicle, and have selected a different exit terminal to your entry terminal, you will be liable for payment of a ULEZ charge to transfer your vehicle to another terminal.
Strong pent-up demand as travel restrictions ease – In Q3, Heathrow experienced its first full quarter of passenger growth since 2019, underscoring strong pent-up demand as travel restrictions eased and testing requirements were simplified. Passenger numbers in Q3 recovered to 28%, and cargo to 90% of pre-pandemic levels. Traffic is not expected to fully recover until at least 2026.
£3.4bn in total losses since the start of pandemic underscore long road ahead – Airports have very high fixed costs and despite over 30% reduction in operating costs, Heathrow has lost £3.4bn cumulatively since the start of the pandemic and remains loss making today. We have the financial strength, with £4.1bn of cash, to be able to come through until the market recovers.
"We are on the cusp of a recovery which will unleash pent-up demand, create new quality jobs and see Britain’s trade roar back to life – but it risks a hard landing unless secured for the long-haul."
Sustainable Aviation Fuel mandate will accelerate decarbonisation - The UK Government’s ambition to implement a mandate for at least 10% SAF use by 2030 and £300m kickstart funding for production in the UK, provides leadership by example to other world leaders ahead of the COP26 summit in Glasgow. We now need government to set higher mandate levels for 2050 and provide a price stability mechanism, such as contracts for difference, to scale up supply as fast as possible. Passengers can purchase SAF for their flights through a number of airlines, including British Airways, or from independent platforms such as CHOOOSE, who have partnered with Heathrow.
CAA H7 initial proposals do not go far enough to ensure financeability – We have transformed Heathrow through private investment so that it is now rated by passengers as one of the top 10 airports worldwide, and airlines are able to achieve premium margins at Heathrow. However, our shareholders have achieved negative returns in real terms over the last 15 years. The CAA’s Initial Proposals do not go far enough to ensure that investors can achieve a fair return in H7 which is key to securing future private investment in passenger service and resilience for Britain’s hub airport.
Heathrow CEO John Holland-Kaye said:
“We are on the cusp of a recovery which will unleash pent-up demand, create new quality jobs and see Britain’s trade roar back to life – but it risks a hard landing unless secured for the long-haul. To do that, we need continued focus on the global vaccination programme so that borders can reopen without testing; we need a fair financial settlement from the CAA to sustain service and resilience after 15 years of negative real returns for investors; and we need a progressively increasing global mandate for Sustainable Aviation Fuels so that we can protect the benefits of aviation in a world without carbon.”
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