Heathrow Airport Case Study

Explore our Heathrow Airport Limited case study to see how MCC led a strategic review of cost and revenue allocation practices, identifying key risks and recommending improved financial reporting arrangements. Learn how our expertise helped refine cost policies to enhance transparency and protect consumer interests.

What the Client Needed?

Heathrow Airport Limited required an in-depth evaluation of its cost and revenue allocation practices to assess potential consumer harm and ensure regulatory compliance. The client sought a structured analysis of consumer harm, risk assessment framework, data collection strategy as well as project oversight and management. Given the complexity of financial structures within a large-scale operation like Heathrow, the client needed expert guidance to navigate data challenges and strengthen cost transparency.

How we Helped them?

Forensic Accounting

MCC, led by PJ McCloskey, delivered comprehensive project leadership and financial expertise, including:

  1. Consumer Harm Assessment:
    • Developed a framework to assess whether Heathrow’s cost allocation practices led to unfair financial burdens on consumers.
    • Investigated revenue distribution methodologies to determine their impact on pricing structures.
  2. Risk Analysis & Data Collection Strategy:
    • Identified three critical financial risks associated with cost and revenue allocation.
    • Designed structured data collection requirements to acquire the necessary financial records and operational insights.
  3. Project Leadership & Execution:
    • Managed project progress, ensuring alignment with Heathrow’s objectives and regulatory considerations.
    • Coordinated with stakeholders to facilitate access to financial data and operational reports.
  4. Findings & Recommendations:
    • Due to insufficient evidence, the project concluded that proof of consumer harm could not be established.
    • Recommended enhancements to cost policy and financial reporting practices to prevent potential consumer harm in the future.

I was delighted that MCC's work was completed on time, and within budget, helping us deliver important changes and improvements, to the benefit of our stakeholders. ​ MCC's report is published on the CCC website.

- Bea Natzler
Team Leader at Climate Change Committee, UK

I am delighted to recommend MCC Economics. Specifically, I worked closely with PJ, who helped us with our Nuclear and CCUS projects. PJ helped us develop new policies and answer questions from our stakeholders. ​​His support helped us deliver important changes and improvements, to the benefit of our stakeholders.

- Gordon Hutcheson
Head of Nuclear Policy at Ofgem, UK

MCC Economics has helped us better understand the most important issues for our stakeholders, including: charges, shareholder returns, debt payments and inflation impacts.

- Leila N. Nasr
Section Head at Department of Energy, Abu Dhabi