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.
For airports that are subject to price control under the Airports Act 1986 the CAA is currently assessing whether the airport operators meet the test. More information about market power assessments.
If an airport passes the market power test it will require a licence from 1 April 2014. Any licence will include conditions that the CAA considers necessary to deal with the risk that the airport operator will abuse its substantial market power. Such conditions may include price controls on airport charges.
Below are documents relating to the CAA’s review of whether Gatwick Airport meets the market power test and, if so, the appropriate form of regulation and licence.
- Additional information from Gatwick Airport Limited
- Request for additional points on the Q6 airport price control consultation process - letter to Q6 respondents (November 2013)
- Economic regulation of Gatwick Airport Limited after April 2014: the CAA's final proposals (October 2013) Interim responses, responses to final proposals (including responses to other responses)
- CAA's top down benchmarking data for final proposals (October 2013)
- Estimating the cost of capital: a technical appendix to the CAA's final proposals for economic regulation of Heathrow and Gatwick after April 2014 (October 2013)
- ACC's response to GAL's view on the impact of Flybe slot purchase by easyJet (September 2013)
- Gatwick Airport's views on the impact of Flybe slot purchase by easyJet (September 2013
- 20 September final commitments proposals by Gatwick Airport Limited (September 2013)
- Correspondence between CAA, Gatwick Airport and Gatwick ACC on Pier 6 South developments (September 2013 - correspondence, Working Group shared data
- Gatwick's final contracts and commitments proposal (August 2013) responses: British Airways, Virgin - Gatwick's draft Conditions of Use
- Letter to Gatwick Airport and airlines on service quality & capex consultation (July 2013) - joint response
- CAA Board meeting with Gatwick Airport and Airline representatives (17 July 2013)
- Proposed licence conditions under section 18 of the Civil Aviation Act 2012 in relation to price commitments (July 2013) responses: Gatwick Airport,annex to Gatwick Airport, Gatwick ACC, British Airways, Virgin, Ryanair
- Letter to stakeholders: including draft price control condition, draft service quality rebates & bonuses condition, & consultation on draft penalties policy (May 2013) responses to draft penalties policy
- Economic regulation at Gatwick from April 2014: Initial proposals (April 2013) -responses to initial proposals
- CAA Mid Constructive Engagement review letter to Gatwick (October 2012)
- CAA mandate for Constructive Engagement at Gatwick (April 2012)
(Relating to constructive engagement between Gatwick and its airline customers on the airport's business plan)
Q6 stakeholder workshop: Gatwick 6 March 2012
The CAA sought views from the airport and airlines on its emerging thinking relating to key issues.