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UK-EU Transition

References to EU regulation or EU websites in our guidance will not be an accurate description of your obligations or rights under UK law.

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. In December 2016 we have extended, upon consultation, the current price control period for one year, such that it will expire on 31 December 2019.

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. More information on our on-going review of the price control at Heathrow can be found on the Heathrow H7 page.

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 modification Effective date of modification Type of modification Modified condition(s) Effect of modification Links
22 December 2021 2 February 2022 Section 22 of Civil Aviation Act 2012

Conditions A3.1(f) and (g); and C2.1, C2.2, C2.3, C2.5, C4.1, E1.3, E1.5(a)&(b), E2.2, E3.1, E3.5, Schedule 1: paragraphs 2.1(e),(f) &(j), 2.4, 2.28(a)&(b), 3.2, 3.4, 3.4(a)&(b), 3.5, 3.7, 3.11, 3.13, 3.15, 4.2, 4.4, 4.5, 5.2(b) 6.2, 6.3(c) and 6.6;

a new Condition C1;

Conditions C2.5, 2.6

Schedule 1 paragraphs 4.1, 4.2,4.3,4.4,4.5 and 4.6 and Table 9.

  • insert new price control condition to set a new 'holding price cap' for 2022;
  • consequential changes to the Licence, including Schedule 1, to update the price control arrangements;
  • minor changes to remove a redundant term. 

Responses to CAP2265 2022 Charges 

5 November 2019 17 December 2019 Section 22 of Civil Aviation Act 2012 Conditions A3.1(g); new B3.1, B3.2 & B3.3; C1.2; C1.4 including Table C1 & Table C2; C1.9 (Table C3); C1.11 including Table C4; C1.12; new C1.13, C1.14 & C1.15; C1.16 ((d), (h), (j), (p) & (q)); C2.5; 2.6; C4.1; D1.10; E1.5; new E1.6 and subsequent renumbering; new E1.8; Paragraphs 2.2, 4.5, 4.6, 4.7, Table 1a, 1b, 1c, 1d, 9, in Schedule 1
  • extend the current price control by a two year interim period, up to 31 December 2021, taking account of the commercial arrangements between HAL and certain airlines for this period;

  • include a new licence condition to promote economy and efficiency by HAL in the operation, maintenance and development of Heathrow airport;

    and

  • make minor changes to update the price control arrangements, remove obsolete terms and make a change to HAL's regulatory audit requirements to reflect current auditing guidelines

23 December 2016 Amendment: Paragraph 5 of the notice to allow for an annual recovery of £10m of Category B costs for a new northwest runway reported that the CAA had received a representation to its consultation proposing the modification from “the AOC representing the airline community”. The paragraph should have said that the CAA had received a joint representation to its consultation from “the LACC and the AOC representing the airline community".
21 December 2016 1 February 2017 Section 22 of Civil Aviation Act 2012 Conditions C1.2, C1.12 To allow for an annual recovery of £10m of Category B costs for a new northwest runway.
21 December 2016 1 February 2017 Section 22 of Civil Aviation Act 2012 Conditions A3.1g, C1.2, C1.4, C1.9, C1.11, C2.5, C2.6, C2.7, C4.1; Table 9 in Schedule 1 Extension of the Q6 price control by one year to 31 December 2019.
29 July 2016 29 July 2016 Self-modification Paragraphs 2.8a, 2.15, 2.18, 2.20; Tables 10a, 10b, 10c, 10d, 10e in Schedule 1 Remove the question regarding overall cleanliness so the licence condition correctly captures the method used. Update the names of the Q6 governance bodies where agreement on some service quality issues can be taken. Remove references to audited rebates and bonuses and replace with references to rebates and bonuses reviewed and agreed by the CAA. Notice
30 March 2015 30 March 2015 Self-modification 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 by HAL and the airline community. Notice
24 March 2015 5 May 2015 Section 22 of Civil Aviation Act 2012 Table C.3 in Condition C1.6 Correct an error made to the inflation adjustment of development capex.
1 August 2014 1 August 2014 Self-modification Paragraph 2.3 and Table 3d in Schedule 1 Technical changes to QSM measurement in Terminal 2 and measurement of pier served stand usage in Terminal 3. Notice
Close Modifications to the licence

Notices / guidance issued under the licence

Date Related licence condition Brief description Links
30 July 2020 Condition C2 CAA decision on hold baggage screening costs CAA decision
6 March 2015 E1 HAL has to produce regulatory accounts in conformity with CAA regulatory accounting guidelines Guidelines
19 November 2014 Schedule 1 CAA determination on HAL's service quality protocol Service quality determination
23 September 2014 D2 Additional guidance for operational resilience plans

Additional guidance

HAL response

Heathrow AOC response

Consultation on additional guidance

Close Notices / guidance issued under the licence

Q6 capital triggers definition sheets

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

Close Q6 capital triggers definition sheets

Service quality

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

Close Service quality

Q6 licence and airport price control

Consultancy reports

Consultant reports commissioned by the CAA

Consultant reports commissioned by other stakeholders

Close Consultancy reports

Previous price control reviews

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