Airports Price Control - Q4 Review (2003-2008)

Archive of airport price control documents relating to Q4

Review of Q4 (2003-2008) Price control reviews

In 2004 and 2005, the CAA reviewed the processes by which it carries out its price reviews of airports. The review looked back at the 2003 airport price cap reviews and set out how the CAA believed that airport regulation should develop in the run-up to the next reviews.

Airports Price Review (Heathrow, Gatwick, Stansted and Manchester 2003-2008)

  • Economic Regulation of BAA London Airports (Heathrow, Gatwick and Stansted) 2003-2008: CAA decision (February 2003) - decision, annexes
  • Economic Regulation of Manchester Airport, 1 April 2003-31 March 2008: CAA decision (March 2003) - decision, decision to extend price control (November 2005)

The reports of the Commission Competition with its recommendations for the 2003-2008 price caps are available via the following links:

Following a decision by the CAA in May 1999 to extend the price caps at the BAA London airports into a sixth year (the maximum extension the Airports Act allows) the previous price caps at Heathrow, Gatwick, Stansted and Manchester expired on 31 March 2003. New price caps were set for the period from 1 April 2003 to 31 March 2008. The CAA reviewed the BAA London airports and Manchester in parallel.

It followed a programme of work which led up to the decisions on the new price caps in early 2003. This programme was as follows:

BAA London airports

Manchester Airport

  • End October 2002 - Competition Commission reported to the CAA.
  • 13 December 2002 -  CAA published the Competition Commission report (making such excisions as directed by the Government) and its own proposals on charges and public interest matters.
  • 24 January 2003 - Deadline for written representations.
  • Beginning February 2003 - Hearings with the main parties (non-confidential transcript).
  • 13 March  2003 - CAA announced decision on the price cap and on public interest matters identified by the Commission. 
  • April 2003 - New price cap came into effect.

    In October 2000 the CAA commissioned Europe Economics to investigate airport cost allocation and the feasibility of implementing a dual till. The report 'Airport Cost Allocation - Report for the CAA by Europe Economics' is available, as well as an Executive Summary. The CAA produced a related position paper 'Practicalities of Implementing a Dual Till' on the next steps to a possible dual till.  The CAA commissioned AviaSolutions in January 2002 to advise the CAA on the appropriateness of BAA’s regulatory accounting systems for use in a RRCB environment. In April 2002 the CAA commissioned AviaSolutions to provide similar advice on Manchester Airport's regulatory accounting systems. AviaSolutions' reports are available on this website (BAA report, BAA appendix, MA report, MA appendix).

    The CAA held a number of workshops with the industry to discuss its consultation papers.