This spring, Heathrow’s chief executive, John Holland-Kaye, was on the front lines, stacking X-ray trays at security to help keep airport queues stocked. low staff.
Like the rest of the travel industry, west London airport is back up and running after two desperate years as border restrictions stifle business.
But Holland-Kaye has entered her next battle at work involving leading one of the most controversial businesses in UK aviation.
Britain’s busiest airport – which has suffered a £4bn loss since the start of 2020 – has caused a serious rift in the travel industry by pushing landing fees up 90%, leaving airlines also suffering. billion dollars. Losses and debt pile up in times of crisis.
The aversion deepened this week as Holland-Kaye published a positive assessment of the industry’s recovery, while warning this spring and summer surge in travel demand was only a “Bubbles” can be created this winter.
This view is in contrast to a series of positive comments from other parts of the industry. British Airways owner IAG said a “strong and sustained” recovery was underway. Holland-Kaye’s comments have sparked accusations from airlines that he is deliberately defaming the recovery to convince the UK regulator to allow Heathrow to raise fees, charged on an annual basis. per passenger.
Virgin Atlantic said Heathrow was making “skeptical forecasts and conflicting claims”, while the airlines trade body claimed the airport was “trying to raise fees to support shareholder returns”. “.
Holland-Kaye thinks he is simply trying to make an honest assessment of an uncertain future. Heathrow is not forecasting profits or dividends this year.
“I think we are more realistic and we have stayed throughout the pandemic. . . it reflects the reality of the world we live in,” he said this week.
Sometimes, the battle over fees gets personal.
This year, Holland-Kaye was forced to resign from the Department of Transport’s recruitment board following backlash from airlines, who opposed his participation when they argued over fees.
High-profile aviation figures, including Ryanair boss Michael O’Leary and former BA chief Willie Walsh, were delighted to criticize Heathrow.
John Holland-Kaye and BA chief executive Sean Doyle are in virtually daily contact during the pandemic. They even held a stunt shoot on one of Heathrow’s closed runways to highlight the hardships of the airline industry, alongside Virgin Atlantic boss Shai Weiss. © Steve Parsons / PA
To its detractors, the vast airport is a monopoly that abuses its position to charge some of the highest fees in the world.
But for supporters, it’s an important economic and commercial hub that should be allowed to charge extra to invest and keep up with European rivals after it’s been beaten as the region’s busiest airport. area during a pandemic.
Unlike many airline bosses, Holland-Kaye is not a fan of the airline industry.
He joined Heathrow in 2009 after working in the home building industry, including at Taylor Wimpey and Taylor Woodrow, and before that for a brewery and at LEK, a consulting firm.
Holland-Kaye worked for 5 years in commercial and development roles at the airport before taking over as chief operating officer. This included overseeing the launch of the refurbished Terminal 2, which was significantly more successful than the failure when Terminal 5, home of BA, opened 15 years ago amid turmoil. and technical error.
The married father of two, who is due to be paid £1.5 million in 2021, entered the inevitable controversy when he became Heathrow boss in 2014, a position that must be adjusted. address a wide range of politically and commercially sensitive issues.
Executives at Heathrow have argued that conflicts with airlines over regulations and costs are inevitable.
However, Holland-Kaye has taken a more materialistic approach than Walsh or O’Leary who, despite becoming the face of the third runway construction fight, have competed against Heathrow against its surrounding communities and local politicians.
A fierce planning battle is currently raging around the expansion, which Heathrow has rescheduled for this year, has methodically accelerated the process to secure political and legal approval. .
Heathrow also has a longstanding relationship with the airline industry, especially British Airways, its largest customer.
However, industry figures show Holland-Kaye has worked well with current BA chief executive Sean Doyle, and the pair are in virtually daily contact during the pandemic, including promoting joint push to convince ministers to lift travel restrictions. They even held a stunt shoot on one of Heathrow’s closed runways to highlight the hardships of the airline industry, alongside Virgin Atlantic boss Shai Weiss.
The relationships he has worked so hard to build are about to be tested perhaps more than ever
The Civil Aviation Authority will rule on how much Heathrow can charge to land at the airport later this year, and many industry executives hope the decision will be appealed whether it how it happens.
One industry executive said Holland-Kaye had won great goodwill for its efforts to persuade the government to drop travel regulations. But he “smashed it all” by trying to raise the fee at such a delicate time, the person said.
