flybe. (2002) (Exeter) has suspended plans to begin domestic UK services from London Heathrow claiming the concessions offered by operator Heathrow Airport Ltd are insufficient.
The carrier had planned to start flights to Scotland during the last quarter of the year using slots allocated to it. However, according to CEO Saad Hammad, the GBP10 (USD12.95) discount offered by Heathrow Airport Ltd to domestic operators is not enough to offset the cost of operating from the airfield.
"A regional airline with smaller aircraft cannot connect the UK regions viably to Heathrow without appropriate concessions and support," he said in a statement to the BBC. "We have been encouraged by the constructive spirit with which Heathrow in particular was making towards reaching a mutually agreeable outcome. We welcome the GBP10 per passenger discount they have, for example, proposed for domestic airlines as of January 2017. Sadly, however, this is not enough. Flybe is keen to give Heathrow and other stakeholders time for a rethink."
Airline management has argued that carriers operating smaller turboprop/jet aircraft should not be charged fees that are similar to those employing widebody jets.
As the UK's largest domestic operator, Flybe has advocated that smaller airports around London, such as RAF Northolt and London Biggin Hill, be developed into hubs catering to the domestic UK market. In addition to cheaper operating costs and access to the British capital, they also offer convenient overland connections to major gateways such as Heathrow.
