Economic Regulation

Our role in the economic regulation of UK airports, airlines and air navigation service providers.

The prime focus of the CAA's economic regulation work is to ensure that airports and air navigation service providers that have substantial market power do not exploit it.

The CAA assesses the market power of airports and if an airport passes the market power test in the Civil Aviation Act 2012, we regulate the airport with an economic licence.  Currently Heathrow and Gatwick are licensed.

Licence conditions include a price cap on Heathrow’s charges on airlines, the enforcement of commitments Gatwick made to its users, and requirements about the operational resilience at both airports.

The CAA also licences NATS en-route provision of air traffic services. 

Further information: