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Heathrow needs drastic action to solve its chronic delays and poor customer service, a report has claimed.

Business group London First has put forward a controversial solution to Heathrow's problems by suggesting the number of flights are reduced, making delays less likely.

The organisation argues another runway will make a good long-term solution, but if London is to remain competitive in the global market, tough decisions will need to be made now.

Heathrow is operating at 99 per cent capacity, London First said in its report, meaning one delayed flight has a domino effect, leading to severe delays across many flights.

If flights were reduced so the airport was running at 94 per cent capacity, delays would be cut by 15 per cent, the group claims.

Baroness Jo Valentine, chief executive of London First, said: "Heathrow has been turned from a silk purse to a sow's ear. Once an asset in attracting business to the capital, it is at risk of becoming a liability.

"While proposals for Runway 3 will undeniably address capacity issues in the long term, we need a better Heathrow now."

However, slashing the number of flights at the UK's busiest airport is not the solution, the Confederation of British Industry (CBI) warned.

Director of the CBI's London region, Nigel Bourne, said: "We agree that London needs a world class airport to ensure that the UK remains competitive but the options discussed in this report do not offer a long-term solution to Heathrow's capacity problem.

"Removing transfer passengers and flights could actually undermine Heathrow's ability to act as a hub airport. This type of traffic often helps support services that would not otherwise be commercially viable.

"The only real solution to the problem at Heathrow is the provision of much needed additional capacity, subject to meeting the environmental criteria."

The report also suggests cutting waiting times by giving the responsibility to one organisation and greater investment to improve "shabby" facilities.