A 50% increase in the discount for domestic flights from Heathrow has been introduced.
Meanwhile, environmental charges at Heathrow are set to rise by 7% as the airport seeks to minimise its impact on local communities.
Airlines flying to any UK destination from Heathrow have a £15 cut on the airport charges they pay from yesterday (January 1).
Heathrow described the measure as the biggest discount in the airport’s history.
It will result in savings of nearly £40 million a year and more than £750 million over the next 20 years.
At the same time airlines will be incentivised to deploy the newest aircraft at Heathrow with the introduction of a higher environmental charge.
The domestic discount is one measure Heathrow is implementing to support more flights to UK destinations.
The ultimate aim is to increase the airport’s domestic connections from eight today to at least 14 if the airport expands in 2025.
Other measures include creating a £10 million fund to provide start-up capital for five new domestic routes, urging the government to use new powers after leaving the EU to ring-fence slots at the airport solely for domestic flights and campaigning for the abolition of Air Passenger Duty on domestic flights to save UK passengers up to £225 million a year.
The further reduction in the domestic passenger charge will save passengers even more money while making domestic routes more commercially viable for airlines – encouraging them to add more domestic services, according to the airport.
Scottish cabinet secretary for economy, jobs and fair work, Keith Brown, said: “I’m very pleased to see this further reduction in charges, something the Scottish government has long advocated in our work with Heathrow Airport.
“The fact the airport is going beyond the reduction agreed in the Memorandum of Understanding with the Scottish government is welcome news for business and leisure passengers, and will help improve Scotland’s connectivity.”
Heathrow chief executive, John Holland-Kaye, said: “Every corner of our country should be able to benefit from the growth and trade that stems from links to the nation’s hub airport – that’s why Heathrow is making it cheaper to fly within the UK by reducing our domestic passenger charges even further for the second consecutive year.
“Putting nearly £40 million back into the pockets of British families and businesses each year will help to spur growth in every part of the UK.”
He added: “Heathrow is determined to reduce the airport’s environmental impacts.
“Increasing our environmental charges to incentivise airlines to bring their cleanest, quietest aircraft to Heathrow is the best way to cut emissions and shrink the noise footprint around the airport.
“It is a tangible step that will make a real difference to local communities.”