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UK CAA: Gatwick airport charge price committment 'fair price'

4-Oct-2013 1:27 PM

UK Civil Aviation Authority (CAA) published (03-Oct-2013) for consultation its final proposals for the economic regulation of Gatwick Airport after Apr-2014. The UK CAA noted that Gatwick has set out a series of price commitments to its users, with the average price to grow by RPI + 0.5% per year for seven years. The CAA, in its detailed analysis, suggested "that this is a fair price". It continued, "We believe that the airport’s commitments are in passengers’ interests, so they are the basis of our final proposals. They will be backed by a licence to ensure that they are honoured. The licence will also ensure the CAA can continue to act where appropriate to protect users, for instance if there are reductions in service quality that are against the passenger interest". Commenting on the final proposal, CCA chair Dame Deirdre Hutton said: “Gatwick has tabled a revised price offer to airlines that we consider fair, and its new commitments framework offers a chance for a more commercially driven and tailored approach. To protect the diverse interests of passengers, we propose a licence based on the commitments. We would monitor the success of such a new approach and adjust our regulation over time to ensure it remains proportionate.” [more - original PR]