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London City Airport (LCY), located on a dock converted into a fixed pier in East London, is distinct for its size and operational scale. It is the smallest among London's six commercial airports, each catering to different operators. Unlike Heathrow, which faces extensive slot restrictions and high costs for landing slots, LCY does not impose such barriers. However, no low-cost airlines operate from this centrally located airport.
The operating costs at London City Airport are notably higher due to elevated landing and takeoff fees and gate charges. This deters budget airlines as they would need to charge higher ticket prices to remain profitable, making them less competitive compared to full-service airlines. According to BBC News, the airport's current owners—the Ontario Teachers' Pension Fund and the Kuwait Investment Authority—aim to maintain profitability without reducing these fees.
Budget airlines typically operate from other London airports like Gatwick, Stansted, Luton, and Southend. These airports thrive on budget airline traffic despite being further from central London. The lack of low-cost carriers at LCY raises questions about why these airlines avoid the airport despite its convenient location.
