CAA confirms both passenger and cargo services at Stansted Airport will be free from economic regulation from April

Date: 24 March 2014

The UK Civil Aviation Authority (CAA) has today (24 March 2014) published its final decision on future economic regulation of Stansted Airport’s cargo market, confirming the airport will not require an economic regulation licence for any of its services from April 2014 onwards.

The decision follows an assessment of the airport’s cargo services including consultation with key stakeholders. Under the Civil Aviation Act 2012, only airports that have substantial market power are required to have airport licences and are subject to economic regulation.

Taking this in to consideration the CAA has today confirmed there is not sufficient evidence that Stansted Airport has substantial market power for its cargo services. This follows the CAA’s previous announcement confirming Stansted’s passenger services did not have substantial market power.

Iain Osborne, Director for Regulatory Policy at the CAA, said:
“The CAA’s role in cargo is to look after the interests of the consumers who own air-freight, and they appear to have a lot of choice in the market. We only economically regulate airports where there is insufficient competition, and our assessment has not found evidence that this is the case regarding Stansted’s cargo services. This follows our earlier decision that Stansted’s passenger services do not have market power.

“Together, these decisions mean Stansted will not be economically regulated from April onwards. This gives Stansted an excellent opportunity to innovate and we expect to see competition drive the delivery of high quality services that meet the needs of both passengers and cargo owners.”

The CAA will continue to monitor the effects of competition at Stansted and other UK airports to make sure airports are operating in the interests of passengers and cargo owners.

The CAA’s decision on Stansted’s market power (cargo services) is available to view here.

Follow the CAA on Twitter @UK_CAA.

For further media information contact the CAA Press Office on: 00 44 (0)207 453 6030. press.office@caa.co.uk

Notes to Editors
1. The CAA’s final decisions for economic regulation at Gatwick, Heathrow and Stansted (passenger market) were announced on 10 January 2014. More information on these decisions is available here.
2. The CAA is the UK's specialist aviation regulator. Its activities include: making sure that the aviation industry meets the highest technical and operational safety standards; preventing holidaymakers from being stranded abroad or losing money because of tour operator insolvency; planning and regulating all UK airspace; and regulating airports, air traffic services and airlines and providing advice on aviation policy.