Q6 Price Control Review of Heathrow Airport

Information about the CAA's economic regulation work

The CAA has powers under the Civil Aviation Act 2012 to license airport operators that pass a market power test. 

This test consists of three parts:

  • A – that the airport operator has, or is likely to acquire, substantial market power in a market, either alone or taken with other such persons as the CAA considers appropriate;
  • B – that competition law does not provide sufficient protection against the risk that the airport operator may engage in conduct that results in an abuse of the substantial market power; and
  • C – that, for users of air transport services, the benefits of regulating the airport operator by means of a licence are likely to outweigh the adverse effects.

In January 2014 the CAA published the finding of its market power assessment of Heathrow. The CAA found that Heathrow passed the market power test and, therefore, requires an economic licence from 1 April 2014. More information about the CAA's market power assessment of Heathrow is on the following page market power assessments.

Below are documents relating to the CAA’s review of the appropriate form of regulation and licence for Heathrow.

Q6 Stakeholder workshop: Heathrow 9 March 2012

The CAA sought views from the airport and airlines on its emerging thinking relating to key issues.

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