As of yesterday, Heathrow Airport has reduced the passenger service charge on UK domestic flights by a further £5. This follows an initial £10 reduction last January.
This is part of a series of moves by the airport to shore up support for the 3rd runway. By encouraging more domestic flights to the airport, the project can be seen as having UK-wide benefits.
The plan is to increase the number of UK destinations served from Heathrow to 14 from the current eight by 2025. To encourage this, Heathrow will be providing £10m to subsidise five new domestic routes, although this pot will be of little use to anyone except British Airways if airlines cannot also get well-timed slots.
The passenger service charge for a domestic flight (shown as ‘UB’ on the breakdown of your ticket price) is now £14.30 from Heathrow. This compares to £19.30 for a European flight and (according to ITA Matrix) a whopping £44.91 for an economy flight to New York.