• Financial modelling

    In CAP1658, we used the Regulatory Financial Model (RFM) to produce an analysis on financeability and affordability.  The sources used to populate the RFM with data are described in CAP1658. In summary, base case capital expenditure data was provided by Heathrow and other data are assumptions developed by the CAA in consultation with Heathrow and the airlines.

    We intend to continue to use the RFM for assessment of financeability and affordability through the H7 process. The RFM will be further developed as we proceed towards setting the H7 price control and we expect that in that time there may be changes to some of the assumptions as we develop our financeability policy. We invite comment and discussion of our modelling approach to help us to refine the RFM.

    We are publishing the RFM to provide transparency around the process and to facilitate consultation on the detail of our modelling approach.  Since the model is in a file format that is not currently compatible with this website the model will be distributed to individuals on request via our file sharing site.  If you would like to have access to the RFM and the associated user guide, raise questions relating to the model or request a meeting to discuss detailed modelling points, please contact Dan Rock (dan.rock@caa.co.uk) or Maggie Kwok (maggie.kwok@caa.co.uk).