02 November, 2020

CAA opens consultation over Gatwick Airports proposed new economic regulations.

Photo JMilstein

The UK Civil Aviation Authority (CAA) has today published a consultation on its proposed approach to updating the economic regulation of Gatwick Airport Limited (GAL). Since 2014 the economic regulation of GAL has been based on a set of commitments, given by GAL. These commitments expire on 31 March 2021.

Following engagement with airlines and other stakeholders, GAL proposed a finalised set of new commitments earlier this year that will commence from 1 April 2021.

The proposed new commitments include:

 a price commitment with a cap of Retail Prices Index (RPI) + 0% for published charges;
a number of detailed changes to service quality targets; and
a minimum investment commitment of £120 million per year on average.
Having scrutinised these proposals and considered them in light of the Covid-19 pandemic, the Civil Aviation Authority considers them to be broadly in the interest of consumers. The CAA proposes to accept these commitments and will encourage GAL and airlines to continue working together on unresolved issues (including performance targets that can only be set once new measurement systems have been installed). 

The CAA is also adding two specific items to our ongoing monitoring of GAL's performance, which relate to the availability of seating and the average level of airline discounts, to help protect the interests of consumers.

"We are inviting stakeholders to share their views with us on this proposed approach. The consultation will close on 30 November." 

Link to consultation: www.caa.co.uk/CAP1973

Recommended for you...