CAA launches review of airport pricing and service

CAA launches review of airport pricing and service

The Civil Aviation Authority (CAA) has published its first consultation on the future of price and service quality at Heathrow, Gatwick and Stansted airports.

The consultation, called Setting the Scene for Q6, sets out the CAA's intentions on how it will approach its review and what the key issues are. Airlines, airports and investors have all contributed.

The document is being published after the government tasked the CAA with reforming the framework for airport economic regulation to put passengers first.

A new licence regime for airports with substantial market power, backed up by financial penalties, will be introduced.

Andrew Haines, CAA chief executive, said: “The CAA’s aim is to put passengers’ interests at the heart of our economic regulation and we are keen to ensure that our reviews at Heathrow, Gatwick and Stansted reflect the unique position of each airport. 

"Given the importance of the reviews for the future of these airports, it is vital that everyone with an interest has an opportunity to engage with our review and have their voice heard.  This will help deliver a regulatory regime that supports improvements to the passenger experience and efficient collaboration between airports and airlines, and maintain the confidence of investors.”

Under existing legislation, every five years the CAA is required to set the maximum price levels that the three airports can charge airlines, as well as imposing service quality standards, backed up by rebates to airlines if the airport fails to meet them. Today’s document is the first stage in the process to set the price and service quality levels after April 2014.


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