Economic licensing of Heathrow Airport

This page contains the economic licence for Heathrow Airport, details of modifications to the licence and documents related to our licensing of the airport.

Economic licensing of Heathrow Airport

We have powers under the Civil Aviation Act 2012 for the economic regulation of airport operators that pass the market power test in the Act. In February 2014 we granted a licence to Heathrow Airport Limited (HAL). The licence includes a price control on airport charges for the period 1 April 2014 to 31 December 2018.

The licence, an operator determination, our notice granting the licence and supporting documentation, and documents relating to our licensing of HAL are below:

More information on the market power assessment and the initial licence conditions (including the price control condition) are on the market power assessment and price control pages accordingly.

Modifications to the licence

Licence conditions can be modified in two ways:

  • using a statutory process to modify set out in the Civil Aviation Act 2012
  • using a self-modification process in which HAL and its airline community can modify certain specified parts of the service quality statement of standards and rebates in Schedule 1 of the licence

 Public register of modifications to the Heathrow licence 

Date of modificationEffective date of modificationType of modification Modified condition(s)  Effect of modification Links
30 March 2015 30 March 2015Self-modificationSchedule 1, tables 2b, 3b, 4b, 5b, 10b in schedule 1 Change the delivery date of the automated security queue measurement from 1 April 2015 to a date agreed between HAL and the airline community Notice 
24 March 20155 May 2015Section 22 of Civil Aviation Act 2012Table C3 in Condition 1.6 Correct an error made to the inflation adjustment and development capex

 Notice 

Consultation 

HAL response 

Heathrow AOC  response 

1 August 20141 August 2014Self-modificationParagraph 2.3 and Table 3d in Schedule 1 Technical changes to the QSM measurement for Terminal 2 and measurement of pier served stand usage in Terminal 3 Notice

 

Notices/guidance issued under the licence

 

DateRelated licence conditionBrief descriptionLinks
6 March 2015  E1HAL has to produce regulatory accounts in conformity with CAA regulatory accounting guidelinesGuidelines 
19 November 2014  Schedule 1  CAA determination on HAL's service quality protocolService quality determination
23 September 2014D2Additional guidance for operational resilience plans

Additional guidance

HAL response

Heathrow AOC response

Consultation on additional guidance

  Q6 capital triggers definition sheets

HAL's licence contains triggers on the completion of capital projects. Documents relating to the triggers are below:

Capital investment triggers handbook

Service quality

HAL pays rebates to airlines if its service quality does not reach specific standards. It also receives bonuses for out-performance. Details of its performance against the standards is on its website. Documents relating to service quality at Heathrow in recent years are below: