The Civil Aviation Authority (CAA) has published its first major consultation paper on its policy for the forthcoming reviews of airport price controls at Heathrow, Gatwick, Stansted and Manchester airports. New price controls from Apr-08 to Mar-13 are due to be set in early 2008. (Under the Airports Act 1986, the CAA is charged with setting price controls every five years at each of these airports).
The CAA is proposing to retain two important elements of the existing regulatory regime, namely:
Continuing to set the next caps on airport charges using a ‘single till’ approach, ie setting caps on airport charges by reference to the costs of the airport as a whole, and taking into account projected commercial revenues.
BAA had proposed cross-subsidising the cost of a new runway at Stansted by imposing higher charges on airlines using Heathrow and Stansted.
News such as this delivered daily to your inbox from the Centre's Asia Pacific Airline Daily. Click the icon below for more information.
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.