Aviation boss criticises Heathrow

It's a wake-up call, an emergency situation and things must change very quickly Giovanni Bisignani, Iata

Service levels at Heathrow Airport are "a national embarrassment", Giovanni Bisignani, head of International Air Transport Association (Iata) has said.

He also criticised the Civil Aviation Authority (CAA), saying it was allowing Heathrow to increase charges by 86% over the next five years.

Mr Bisignani said such increases could only happen in "monopolyland".

The CAA said charges were needed to pay for modernisation while BAA said it planned to invest £4bn in Heathrow.

"The CAA agrees that passengers and airlines deserve better service than BAA has provided hitherto, which is why the CAA has put in place tougher service standards and greater financial penalties if BAA fails to deliver," the CAA said in a statement.

"For example, BAA will have to pay back £1.2m to Heathrow airlines for its poor service performance in April this year."

BAA said it was committed to improving services for passengers.

"Over the next five years BAA will be investing over £4bn to improve and transform Heathrow's facilities," its statement said.

"The vast majority of this will be spent on improving existing terminals and that will mean faster check-in, improved security, better baggage connections, and superior terminal facilities."

'Perfect storm'

Iata has warned that the airline industry would lose money this year, having predicted profits in April.

The trade body has predicted that airlines will lose $2.3bn (£1.2bn) this year, having previously forecast a profit of $4.5bn.

Iata represents companies providing 94% of global air travel. It blamed soaring fuel prices and the weakening global economy for creating what it called "a perfect storm".

Heathrow regulators are branded 'a national embarrassment'

It said the problems were exacerbated by aircraft that had been ordered in a boom being delivered during a slowdown.

Mr Bisignani told the BBC there would be many more bankruptcies among airlines.

"That's why we think that governments, partners and trade unions must understand it's a wake-up call, an emergency situation and things must change very quickly in order to be able to survive in a profitable way," he said.

Iata is calling on governments to limit taxation, trade unions not to make excessive wage demands and contractors to make efficiency savings.