The Airports Act 1986

The CAA's economic regulation powers for the non-designated airports in England, Scotland and Wales under part 4 of the Airports Act and for the non-designated airports under the Airports (Northern Ireland) Order 1994 ceased from 6 April 2013. Its powers under the Airports Act for the designated airports of Heathrow, Gatwick and Stansted will cease from 1 April 2014. 

This page contains documents relating to the CAA's regulation of airports under the Airports Act.

Preparing for a more competitive airports sector

Introductory documents

Preparing for a more competitive airports sector: Objectives and processes (March 2010)

Note of seminar on initial consultation on objectives and processes (December 2009)

Presentation at seminar on initial consultation on objectives and processes (December 2009)

Preparing for a more competitive airports sector - Initial consultation document: objectives and processes  (2 page factsheet) (November 2009) responses to the consultation

Competition Guidelines

• Working paper: Empirical methods for assessing geographic markets, in particular competitive constraints between neighbouring airports - update (June 2011)
• Empirical methods for assessing airport behaviour, performance and profitability - update (June 2011)
• Market power assessment guidelines for airports (April 2011)
• Market power assessment guidelines for airports - responses to consultation on draft guidelines (April 2011)
• Responses to draft competition assessment guidelines
• Minutes from working group meeting 24 February 2011
• Minutes from working group meeting 20 January 2011
• Presentation from working group meeting 20 January 2011
• Guidelines for assessing competition in the airport market - discussion of draft guidelines (February 2011)
• Draft competition assessment guidelines - Cover paper (February 2011)
• Draft competition assessment guidelines (February 2011)
• Gatwick Airport response to empirical methods working papers (January 2011)
• BAA response to competition guidelines (December 2010)
• Minutes from working group meeting 12 November 2010
• Presentation from working group meeting 12 November 2010
• Two-sided markets - presentation by Ryanair
• Working paper: Empirical methods for assessing behaviour, performance and profitability of airports (November 2010)
• Working paper: Empirical methods relating to geographical market definition (November 2010)
• Heathrow AOC comments on competition assessment guidelines (November 2010)
• Letter from Gatwick Airport on scarcity (October 2010)
• Minutes of working group meeting 20 October 2010
• Guidelines for assessing competition in the airports market:  Issues paper and way forward - Presentation from working group meeting 20 October 2010
• Competition Guidelines Issues Paper (September 2010) response from BAA, response from Gatwick Airport
• Two-sided platforms and airports (August 2010)
• Load factor vs Yield model presented by Ryanair at working group meeting 9 July 2010 (first pdf file, second pdf file)
• Minutes of working group meeting 9 July 2010
• Presentation from working group meeting 10 June 2010
• Assessing competition faced by airports - presentation on behalf of Ryanair (June 2010)
• Market definition in the airports sector - working paper by Starkie and Yarrow (June 2010)
• Minutes of working group meeting 10 June 2010
• Issuses in assessing competition faced by airports (June 2010)
• Minutes of working group meeting 18 May 2010
• Presentations from working group meeting 18 May 2010 (CAA,Ryanair, BAA, easyJet)
• Minutes of working group meeting 20 April 2010
• Presentation from working group meeting 20 April 2010
• Principles of market definition - draft working paper (April 2010)

Alternative approaches to regulation

• Identifying alternative forms of regulation for airports - Stock take and way forward (March 2011)
• Sub-group meetings - 29 October 2010 and 9 November 2010
• Gatwick Airport letter on development of airport competition in the South East beyond Q5 (February 2011)
• BAA letter on alternative approaches to regulation (January 2011)
• Minutes of working group meeting 16 September 2010
• Classification of regulatory approaches - presentation by Gatwick Airport (September 2010)
• What economic regulation of airports should achieve (September 2010)
• Alternative approaches to regulation - presentation by Gatwick Airport (September 2010)
• Classification of regulatory approaches (September 2010)
• Alternative approaches to price cap regulation: Some initial thoughts for discussion - presentation by BAA (August 2010) - This presentation was prepared for the working group meeting of 6 August 2010, but was not presented due to time limitations.
• Minutes of working group meeting 6 August 2010

Alternative approaches to price cap regulation to minimise distortions to competition and investment incentives - a report by Europe Economics (July 2010) - (Executive Summary)

European regulation 1107/2006 concerning the rights of disabled persons and persons with reduced mobility (PRMs) when travelling by air

• Accessible Air Travel: CAA review on the implementation of European legislation on the rights of disabled and reduced mobility passengers in the UK (March 2010)
• In Focus (short summary document on Accessible Air Travel) (March 2010)
• Research into air passengers' experiences and expectations of the EC Regulation on the rights of disabled persons and persons of reduced mobility when travelling by air (September 2009)
• Comments from stakeholders on implementation of PRM Regulation
• Questions for stakeholders on the implementation of the PRM Regulation in the UK. (questions for airports, questions for airlines, tour operators and travel agents, questions for consumer groups)

Drafting airport licences - Request for advice by the Secretary of State under s16, Civil Aviation Act 1982

• The CAA has today (19 January 2012) submitted its advice to Govenment on an Indicative airport Licence under the proposed new regulatory framework for airports using Heathrow as an example.  This advice was prepared in accordance with the requirements of the Secretary of State's requests for advice issued under the provisions of section 16 of the Civil Aviation Act 1982 (see below)

  Letter to DfT from Andrew Haines 19 January 2012
  Licence
  Timetable
  Summary of responses - (responses - BA, BAA, bmi, easyJet, Gatwick, IATA)

• On 23 November 2011, the CAA published an indicative Airport Licence to help support the passage of the draft Civil Aviation Bill during Parliament. Also published were: covering letter, discussion document (slide pack), May 2010 advice to DfT,request from DfT under section 16 of the Civil Aviation Act 1982.
• Airport Economic Regulation Licence: Request for advice under section 16 of Civil Aviation Act 1982 (letter from Department for Transport to CAA - August 2011)

• Airport Economic Regulation Indicative Licence: Request for advice under section 16 of Civil Aviation Act 1982 - letter from Department for Transport to CAA - September 2011)

• The CAA submitted today its advice to the Government regarding the drafting of some of the contents of the initial licences under the proposed new regulatory framework for airports. This advice was prepared in accordance with the requirements of the Secretary of State's December 2009 request for advice issued under the provisions of section 16 of the Civil Aviation Act 1982 (see "Request for advice from Secrtary of State below).  The Government has indicated that it will consider the CAA’s advice, and publish it in due course.  Following publication, the CAA intends to hold a seminar at which it proposes to present its recommendations to interested parties. (28 May 2010) 

Introductory seminar - 1 March 2010

• Request for advice from Secretary of State
• Agenda
• Presentation
• Background material
• Heathrow Conditions
• Gatwick Conditions
• Stansted Conditions
• Accounts Conditions
• International obligations
• Airport charges directive - note
• Note of the points raised during the seminar

First drafts of licence conditions - 31 March 2010

• First draft conditions - cover note
• First draft conditions - general conditions applying to Tier 1 and 2 licences
• First draft conditions - price control and public interest conditions for Tier 1 airports

Second seminar - 12 April 2010

• Drafting airport licences - morning session
• Drafting airport licences - afternoon session
• Summary of points raised at the seminar

Government review of the economic regulation of UK airports

• Promoting Financial Resilience for Major Airports - Response of the Civil Aviation Authority to the Department for Transport's consultation (February 2010)
• Reforming the framework for the economic regulation of UK airports - The CAA's response to the Department for Transport's consultation, Supporting Paper I - Constructive Engagement, Supporting Paper II - The Competition Commission's analysis of the CAA's regulation of designated airports (May 2009)
• CAA's response to DfT's September 2008 request for views (October 2008)
• CAA presentation to the economic regulatory review seminar in Edinburgh (September 2008)
• CAA presentation to the economic regulatory review seminar in London (July 2008)
• The Government's review of the regulation of UK airports - the CAA's response to the call for evidence (July 2008)

Competition Commission's market investigation into BAA Ltd - CAA submissions

• Letter to Competition Commission on provisional consideration of possible material changes in circumstances (April 2011)
• Response to the consultation on possible remedies regarding Aberdeen Airport (February 2009)
• Response to the provisional decision on remedies (January 2009)
• Reponse to the provisional findings (September 2008)
• Response to the emerging thinking (May 2008)
• Submission on the economic regulation of BAA airports (February 2008)
• Response to supply of market services by BAA issues paper (September 2007)
• Submission to market investigation (May 2007)

Price control

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.

• letters from the CAA to Chairs of BAA London Airport LACC's and Airport Managing Directors on progress of constructive engagement (September 2005) responses to CAA letters
• presentation from seminar 16 June 2005
• Airport Regulation - the process for constructive engagement (May 2005)
• Airport regulation: looking to the future, learning from the past - Review of responses to the CAA's Consultation Document (December 2004)
• responses to the paper
• powerpoint slides from seminar 27 May 2004
• Airport regulation: Looking to the future, learning from the past (May 2004) full document, executive summary

More information on the price control isavailable on the Quinquennial Reviews of Designated Airports page.

Service quality at Heathrow, Gatwick and Stansted

• Letter to Heathrow Airport on service quality (May 2013)
• Letter from Heathrow Airport on service quality (December 2012)
• Letter to Heathrow Airport on service quality (November 2012)
• CAA decision on Gatwick North Terminal Pier Service dispensation request (June 2012)
• Letter from CAA to Heathrow Airport about security queue measurement (February 2012)
• Letter from Heathrow Airport to CAA about security queue measurement (February 2012)
• URS manual security queue audit at Heathrow Airport - final report (January 2012)
• Heathrow Airport - amendment to the statement of standards & rebates - control posts search (November 2011)
• Letter from Heathrow Airport to CAA on service quality failures (November 2011)
• Letter to Heathrow Airport about service quality failures (attachment to letter)
• Letter to Gatwick Airport regarding Security Queues at LGW, Scott Wilson manual audit report, response from Gatwick Airport (October 2011)
• Letter to BAA regarding Security Queues at LHR,Scott Wilson manual audit report, response from BAA (October 2011)
• Consultation: Proposed amendment to the Statement of Standards & Rebates - Control posts search (September 2011)
• Heathrow Airport amendment to service quality Statements of Standards and Rebates (August 2011)
• Letter from Gatwick Airport on service quality (May 2011)
• Letter to Gatwick Airport on service quality (May 2011)
• Update, Stansted Airport - service quality rebate scheme (December 2010)
• Heathrow Airport - Terminal 5 staff security queue measurement, operating agreement (December 2010)
• Letter from Stansted Airport on service quality (November 2010)
• Gatwick Airport - Amendments to the Service Quality Statement of Standards and Rebates (November 2010)
• Letter from Gatwick Airport on service quality (November 2010)
• Letter from Heathrow Airport on service quality (November 2010)
• Letter to Heathrow Airport about service quality (October 2010)
• Letter to Gatwick Airport about service quality (October 2010)
• Letter to Stansted Airport about service quality (October 2010)
• Gatwick Airport - CAA proposals following audit of service quality standards and rebates scheme and Proposed amendment to the Statement of standards and rebates -response from AUC, response from Gatwick Airport, response from British Airways
• Audit of service quality and rebates scheme at Heathrow and Gatwick airports - Gatwick Airport findings report
• Heathrow Airport: CAA proposals following audit of service quality standards and rebates scheme and Proposed amendments to the statement of standards and rebates (October 2010) - response from AUC,response from British Airways
• Audit of service quality and rebates scheme at Heathrow and Gatwick airports - Heathrow Airport findings report (October 2010)
• Stansted Airport - Audit report of service quality measures - report by Steer, Davies, Gleave (October 2010)
• Stansted Airport - CAA proposals following audit of Service Quality Standards and Rebates Scheme (September 2010) response from Stansted Airport, response from AUC
• Gatwick Airport - Proposed changes to the Statement of Standards and Rebates (main document, Attachment B) (September 2010) response from BA, response from Gatwick Airport, response from Air Transport Users Council
• Gatwick Inter Terminal Shuttle Operating Protocol (June 2010)
• Heathrow and Gatwick airports: CAA update and decision following audit of Service Quality Standards and Rebates Scheme (March 2010)
• Letter from Stansted Airport on service quality (February 2010)
• Letter to Stansted Airport about service quality (January 2010)
• Letter from Gatwick Airport about service quality (December 2009)
• Letter to Gatwick Airport about service quality (November 2009)
• Letter from Stansted Airport about service quality (November 2009)
• Letter from Heathrow Airport about service quality (November 2009)
• Consultation document - Heathrow and Gatwick Airports - CAA proposals following service quality audit (November 2009)
• Letter to Heathrow Airport about service quality (November 2009)
• Letter to Stansted Airport about service quality (November 2009)
• Audit of service quality measures at Heathrow and Gatwick airports (July 2009)
• Gatwick Airport - CAA decision on modification of the Statement of Standards and Rebates to include three additional elements (March 2009)
• CAA decision on audit of service quality measurement at Heathrow and Gatwick (March 2009)
• Gatwick Airport - CAA proposals for modification to the Statement of Standards and Rebates to include three additional elements (March 2009)
• Letter to Heathrow Airport on service quality (February 2009), reply from Heathrow Airport (February 2009)
• Letter to Gatwick Airport on service quality (February 2009) reply from Gatwick Airport (February 2009)
• Service quality letters to Heathrow and Gatwick (Heathrow reply, Gatwick reply) (November 2008)
• Service quality letters to Heathrow and Gatwick (Heathrow letter, Gatwick letter) (October 2008)
• Service quality at Heathrow and Gatwick airports (report, annex) (October 2008)
• Suspension of rebates for security queuing at Heathrow and Gatwick airports: CAA decision pdf file (January 2007)
• Proposed suspension of rebates for security queuing at Heathrow and Gatwick airports - Consultation paper (consultation paper, annex, BAA's application to suspend, letter from Heathrow Airport, letter from Gatwick Airport) (November 2006) responses
• Service quality - Statement of standards and rebates - consultation on investment related exclusion for pier service at Gatwick pdf file (July 2006)
• CAA decision: Revised standards and rebates for Heathrow and Gatwick airports, decision, annex 1(March 2006) corrections and clarification (May 2006)
• Consultation on review of Standards and Rebates for airports and aerodrome congestion proposals pdf file (November 2005) QSM audit report, BAA's response to the audit and terms of reference for QSM audit, responses
• Service quality: Statement of standards and rebates - re-instatement of pier service into the scheme at Gatwick, consultation paper (April 2005) CAA decision (June 2005)
• Service Quality: Statement of Standards and Rebates - Removal of South Terminal Pier 3 transit system from the scheme consultation paper, Gatwick Airport letter, Gatwick AOC letter (March 2005) CAA decision (May 2005)
• Economic Regulation of Heathrow and Gatwick Airports: Service quality standards - Modification of conditions (February 2005) pdf file
• A Report by the CAA on the work of the Aerodrome Congestion Working Group (February 2005) pdf file (submissions) BAA report of trial, the trial superlog is available, by e-mail, from airportregulation@caa.co.uk
• Review of the Standards and Rebates Schemes for Heathrow and Gatwick Airports (February 2005) pdf file (submissions)
• Economic Regulation of Heathrow and Gatwick Airports: Service Quality Standards - Proposed modifications to conditions (October 2004) (submissions)
• Decision temporarily removing pier service at Gatwick North Terminal from the scheme of standards and rebates for service quality (August 2003)
• Consultation paper on temporarily removing pier service at Gatwick North Terminal from the scheme of standards and rebates for service quality (July 2003)
• Service Quality - Statement of Standards & Rebates (May 2003)

Capital expenditure triggers at Heathrow and Gatwick

• CAA decision on proposed change to Heathrow triggers (September 2012)
• Proposed change to the price control to allow for additional triggers for 2013/14 (year Q5+1) and agreement of Heathrow/LACC/AOC
• CAA decision: Proposed changes to trigger verification process at Heathrow and Gatwick airports (September 2011)
• Proposed change to trigger verification process for Heathrow and Gatwick airports (July 2011) responses
• Letter to Gatwick Airport approving amended North Terminal extension trigger (May 2011)
• Letter to Gatwick Airport approving amended South Terminal consolidated security facility trigger (May 2011)
• CAA decision - North West Zone (1a) (April 2011)
• Letter to Gatwick Airport about North West Zone (1b) trigger (March 2011)
• Gatwick Airport - ITTS trigger met (November 2010)
• Gatwick Airport - changes to the capital expenditure triggers (November 2010)
• Gatwick Airport - South Terminal check-in trigger met confirmation (September 2010)
• Gatwick Airport revised capital expenditure triggers (May 2010)
• Letter to Heathrow Airport about capital expenditure triger for completion of T4 check-in extension: completion of South West bank of check-in desks (March 2010)
• Gatwick Airport and airlines joint submission to amend capex triggers - note on proposal, Pier 1 amendment, Pier 2 amendment, NW Zone amendment, guidance slides (March 2010)
• Letter to Heathrow Airport about capital expenditure trigger for completion of T4 baggage sorter (February 2010)
• Gatwick Airport - CAA decision on the specification of capex triggers (March 2009)
• Heathrow Airport - CAA decision on the specification of capex triggers (February 2009)
• Letter to BAA on Heathrow Terminal 4 CIP capital expenditure trigger (January 2009)
• Gatwick Airport - CAA proposals for the specification of capex triggers (December 2008) Gatwick Airport Joint Steering Group submission on capex triggers (October 2008) easyJet submission on capex triggers (October 2008)
• Heathrow Airport - CAA proposals for the specification of capex triggers (October 2008), responses
• Decision on the Detailed Specification of the Capital Expenditure Triggers in the Price Cap Conditions for Heathrow & Gatwick - (September 2004) main document, annex
• Consultation on the Detailed Specification of the Capital Expenditure Triggers in the Price Cap Conditions for Heathrow & Gatwick (December 2003) - main document, annex, submissions (British Airways, Heathrow AOC)

The following documents are also available:

London Airports (Heathrow, Gatwick, Stansted)

• Letter from CAA to Ryanair (September 2011)
• Letter from CAA to Stansted Airport (September 2011)
• Heathrow Consultation and Information Protocol (July 2011)
• Invitation to comment on draft Heathrow Consultation and Information Protocol (July 2011)
• Complaint to the Civil Aviation Authority under Section 48 of the Airports Act 1986 made by Ryanair Limited about Gatwick Airport Limited's compliance with the Transparency Condition with respect to check-in desks - The CAA's decision on GAL's compliance and Proposed Remedy (June 2011)
• Assessment of capital expenditure and consultation at Heathrow and Gatwick airports druing the first two years of Q5 (February 2011) response from BAA, response from Gatwick Airport, Appendix to response from Gatwick Airport,response from Heathrow AOC/LACC Heathrow
• Mid-Q5 review of capital investment at Heathrow - report by Currie and Brown (February 2011)
• Audit of consultation requirements in Annex G - Heathrow report by Steer Davies Gleave (February 2011)
• Mid-Q5 review of capital investment at Gatwick - report by Currie and Brown (February 2011)
• Audit of consultation requirements in Annex G - Gatwick report by Steer Davies Gleave (February 2011)
• CAA review of Gatwick Airport's compliance with the Condition on provision of information on costs, revenues and pricing policies associated with charges for check-in desks, following a complaint by Ryanair - CAA request for representations on its provisional findings, CAA review of Gatwick Airport's compliance (November 2010)
• Assessment of capital expenditure and consultation at Heathrow and Gatwick airports during the first two years of Q5 (December 2009)
• Assessment of capital expenditure and consultation at Heathrow and Gatwick airports - letter to industry (July 2009) - responses
• Competition Commission market investigation of BAA Ltd: CAA response to the Commission's recommendations on Heathrow information protocol and service quality audits - CAA letter to BAA, letter to LACC Heathrow, letter to Heathrow AOC (May 2009)
• Heathrow, Gatwick and Stansted airports : Review of existing public interest conditions - an update pdf file (May 2007)
• Heathrow, Gatwick and Stansted airports: Review of existing public interest conditions - Consultation paper pdf file (October 2006) responses
• Heathrow, Gatwick and Stansted Airports - use of August instead of September RPI in price control conditions - CAA decision pdf file (June 2006)
• Heathrow and Gatwick Airports - use of August instead of September RPI in price control conditions - a CAA consultation document pdf file (April 2006)
• Regulatory treatment of preliminary expenditure on new runway capacity: A CAA follow up document pdf file (March 2006)
• Further consultation on the regulatory treatment of preliminary expenditure on new runway capacity: note of clarification pdf file (July 2005), Further consultation on the regulatory treatment of preliminary expenditure on new runway capacity, with tracked changes pdf file (July 2005), Further consultation on the regulatory treatment of preliminary expenditure on new runway capacity pdf file (July 2005) (submissions)
• Further consultation on the regulatory treatment of preliminary expenditure on new runway capacity (June 2005) pdf file (BAA report on preliminary expenditure incurred up to 31 March 2005 pdf file (April 2005))
• Regulatory treatment of initial expenditure on new runway capacity: CAA decision (January 2005) ** Document withdrawn ** CAA update (April 2005)
• Regulatory treatment of initial expenditure on new runway capacity (June 2004) (submissions)
• BAA's expenditure reporting proposals on initial expenditure on new runway capacity (June 2004)
• Previous price caps  - Economic Regulation of BAA London Airports (Heathrow, Gatwick and Stansted) 2003-2008: CAA decision (February 2003) - decision, annexes
• BAA plc: A report on the economic regulation of the London airports companies (Heathrow Airport Ltd, Gatwick Airport Ltd and Stansted Airport Ltd) (October 2002)
• BAA London Airports: A Regulatory Report (March 2000)
• Previous price caps - Economic Regulation of BAA London Airports 1997-2002 (October 1996)

Heathrow

• Taxi Information Desks at Heathrow: CAA Decision Paper (June 2004) 
• Taxi Information Desks at Heathrow: Consultation Paper (December 2003), submissions

Gatwick

• Decision to remove the condition applying at Gatwick Airport preventing the airport from allowing less than two travel outlets on the concourse (September 2003)
• Consultation paper on removing the condition preventing Gatwick Airport Limited from reducing the number of travel outlets on the airport concourse to less than two (July 2003)

Manchester

• Accounting requirements for Manchester Airport under the Airports Act 1986 (March 2009)
• Proposals on accounting requirements for Manchester airport under the Airports Act 1986 (January 2009)
• Extending the Price Control on Manchester Airport: CAA decision (November 2005) pdf file
• Extending the Price Control on Manchester Airport - a CAA consultation document (July 2005) pdf file (submissions)
• Economic Regulation of Manchester Airport, 1 April 2003-31 March 2008: CAA decision (March 2003) - decision
• Competition Commision report - Manchester Airport plc: A report on the economic regulation of Manchester Airport plc (October 2002)
• Previous price caps - Economic Regulation of Manchester Airport 1998-2003 ( November 1997)

Luton

• CAA Advice to the Secretary of State for the Environment, Transport and the Regions on the Application of easyJet to designate Luton Airport for the purposes of part IV of the Airports Act 1986 (July 2000)

Stansted 

• Information on the economic regulation of Stansted Airport (September 2012)
• Letter to Manchester Airport Groups regarding the CAA's regulatory charges imposed on Stansted (November 2012)
• Letter to Stansted Airport Ltd regarding the CAA's consultation on charges (December 2012)
• Economic regulation of UK airports and the lessons for China - presentation to CAAC (June 2012)