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NATS En Route plc NERL Licence

A list of documents detailing the modifications to the NATS Licence
  • Airspace
  • Licences for air traffic roles
    • Air traffic controllers
    • Flight Information Service Officers
    • Radio Operators
  • Air navigation services
    • ATM IR
    • Certification and designation
    • Change management and notification process
    • NATS En Route plc NERL Licence
    • Contestability assessment
    • Air Traffic Control : NATS system failure enquiry
    • Single European Sky interoperability requirements
    • UK Wake Turbulence Categories
  • Airspace change
    • Airspace change process
    • Change proposals in the FASI S and FASI N programmes
    • Secretary of State call-in process
    • Airspace information: transparency about airspace use and aircraft movements
    • Permanent airspace change proposals under CAP1616
    • Permanent airspace change proposals under CAP725
    • Temporary airspace change proposals and airspace trials currently being developed
    • Legislative framework to airspace change
    • Transitioning to the new airspace change process
    • Airspace classification
  • Communication, navigation and surveillance
    • Aeronautical data quality
    • Aeronautical information
    • Aeronautical radio stations
    • Performance based navigation licence endorsement
    • Performance based navigation licensing exemptions
    • Radio licensing
    • Remote towers
    • SID and STAR phraseology
    • Spectrum
    • Use of surveillance data from unapproved systems
    • VHF & NDB frequency assignments
  • Event notification
    • Airspace coordination notices, large balloon releases and other events
  • Airspace Modernisation Strategy
    • Airspace Modernisation Update
    • About the strategy
    • Shared Objective and Parameters
    • What are the benefits?
    • Summary of initiatives
    • Performance based navigation
    • Airspace Modernisation Strategy and VFR flight operations
  • Future airspace strategy
    • About the strategy
    • Targets and time scales
  • Rules of the air
    • Changes to UK rules of the air
    • Implementation
    • Legislation and references
  • Economic regulation
  • Under the Transport Act 2000 the Government issued a licence to NATS (En Route) plc (NERL) to provide en route air traffic services in the UK.

    The Act gives the CAA the role of economic regulator of NERL. The CAA exercises this role mainly through monitoring and enforcing the conditions in the Licence and through modifications to the Licence. The Licence is available below, as is a descriptive summary of the price control conditions in the Licence:

    • Air Traffic Services Licence  for NATS (En Route) plc (December 2020)
    • Correction to CAP2011: Economic regulation of NATS (En Route) plc: Decision on licence modifications (January 2021)
    • Note on consents following NATS refinancing (August 2015)
    • Note on consents issued in respect of Condition 5 or NERL Licence (July 2012)
  • RP3 UK performance plan – UK final decisions

    NERL RP3 price controls decision

    Decision on licence modifications to NERL's air traffic services to implement the price controls for the period 2020-2022. The modifications implement the CMA's decision, introduce a new licence condition to establish processes and procedures to coordinate airspace modernisation, modifications to improve the clarity of certain obligations in the licence, and guidance relating to NERL's capital expenditure incentives.

    • Economic regulation of NATS (En Route) plc: Decision on licence modifications and guidance (December 2020)

     

    RP3 interim price controls review

    • Economic regulation of NATS En Route plc: Consultation on the approach to the next price control review (December 2020)

    Economic regulation for Reference Period 3 under the Single European Sky (2020-2024)

    RP3 UK performance plan - CAA final decisions

    The CAA has made its final decisions on the UK RP3 performance plan. These decisions are contained in the documents below. On 10 September 2019, NATS formally advised the CAA that it rejected our decisions in respect of the NERL UK and Oceanic price controls. Consistent with the statutory provisions within the Transport Act, on 19 November 2019 the Civil Aviation Authority referred this to the Competitions and Markets Authority to consider and report in due course.

    • Economic regulation of NATS (En Route) Plc consultation on licence modifications and guidance (CAP1967) (September 2020)

    Responses to CAP1967

    • British Airways
    • IATA
    • NERL

     


     

    • Reference to the CMA - CMA Final Report (August 2020)
    • Reference to the CMA - CMA Final Report appendices (August 2020)
    • Reference to the CMA - CMA Final Report glossary (August 2020)
    • CAA response to CMA request to extend reference period (May 2020)
    • CMA request to extend reference period (May 2020)
    • Reference to the CMA - CAA response to CMA Provisional Findings - Appendix A Responding to Covid-19 (April 2020)
    • Reference to the CMA - CAA response to CMA Provisional Findings (April 2020)
    • Reference to the CMA - notice of variation of reference (February 2020)
    • Revised draft Condition 10a - Airspace Modernisation
    • Guidance note: NER Licence Condition 10a _ Airspace modernisation
    • Reference to the CMA of NERL RP3 price controls: CAA response to NERL's Statement of Case
    • CAA letter to CMA re: reference of the NERL RP3 price controls 
    • CAA reference to the Competition and Markets Authority of the NERL RP3 price controls
    • NATS letter to CAA re: RP3 Final Decision Document CAP 1830
    • CAA RP3 Decision Statement
    • UK RP3 CAA decision document (CAP 1830)
    • Appendices to UK RP3 CAA decision document (CAP 1830a)
    • UK RP3 CAA Decision Document - RAB Rules Working Paper (CAP 1830b)
    • UK RP3 performance plan
    • Letter from Paul Smith to Martin Rolfe - Summary of CAA RP3 conclusions (August 2019)

    Consultancy reports

    • Europe Economics - Comments on NERA/NERL critiques of Europe Economics' WACC analysis (June 2019)
    • GAD - Review of further evidence provided by NERL (June 2019)
    • Grant Thornton - NATS Financial Model 2018 - Findings from agreed testing procedures, updated for CAA final decision on price controls for Reference Period 3 (August 2019)
    • PwC Economics - Estimating the cost of capital for H7 and RP3 - responses to stakeholder views on total market return and debt beta (August 2019)

     

    CAA draft performance plan proposals for consultation

    This document sets out for consultation the CAA's proposals for the UK's draft performance plan for Reference Period 3 (2020-2024)

    • Draft UK Reference Period 3 Performance Plan proposals (February 2019)
    • Appendices to Draft UK Reference Period 3 Performance Plan proposals (February 2019)
    • Update on cost of capital for RP3 and H7 (February 2019) 
    • NERL capital expenditure (capex) and Airspace Modernisation Strategy (AMS) funds governance policy and processes - draft for stakeholder comment (July 2019)
    • Horizontal flight efficiency (KEA) target for RP3 (July 2019)
    • Explanatory note: draft airspace modernisation condition for NERL licence (June 2019)
    • Working note: Capex and Airspace Modernisation Strategy (AMS) funds governance policy development (April 2019

    Consultancy reports supporting the CAA's proposals for the UK's RP3 draft performance plan

    • Components of the Cost of Capital for NERL by Europe Economics (February 2019)
    • NERL's Cost Allocation and Non-Regulatory Income Forecasts by CEPA (February 2019)
    • NATS (En Route) plc SIP: Review of SIP Process by Grant Bremer (February 2019)
    • NERL's forward-looking capital programme and expenditure efficiency by Steer Group (February 2019)
    • NATS Financial Model 2018 - Findings from agreed testing procedures by Grant Thornton (February 2019)
    • H7 Initial WACC response document by PwC (February 2019)

    • The trustees of the CAA Pension Scheme wrote a letter to the CAA in January 2019 about a Regulatory Policy Statement on NERL's Pension Costs.

    Responses to consultation document

    • NERL (response, Appendix E, Appendix F, Appendix G)
    • NSL
    • IATA (response, Attachment 1, Attachment 2, Attachment 3)
    • IAG (response, cost of capital)
    • Emirates
    • Ryanair
    • Virgin
    • Heathrow Airport
    • Prospect
    • PCS (Aviation group)

    NERL RP3 Business Plan

    • NERL RP3 Business Plan (October 2018)
    • NERL RP3 Business Plan appendices (October 2018)

    RP3 Customer Consultation Working Group

    • RP3 Customer Consultation Working Group: Report of the Co-Chairs (October 2018)

    Consultancy Reports

    • Updated Weighted Average Cost of Capital for NATS (En-Route) plc at RP3 - report by NERA (September 2018)
    • Staff Operating Expenditure for Air Traffic Control - report by NERA (March 2018)
    • GAD report

    Views on NERL's RP3 Business Plan

    • Letter from NERL to CAA regarding NERL RBP3 Initial Business Plan (June 2018)
    • Letter from CAA to NERL regarding NERL Initial Business Plan (May 2018)
    • IATA letter to CAA on NERL Business Plan (letter, Appendix 1, Appendix 2, Appendix 3, Appendix 4)
    • IAG letter to CAA on NERL Business Plan

    Expectations for NERL Revised Business Plan

    • Letter from CAA to NERL regarding NERL Revised Business Plan (September 2018)

    Business Plan Guidance to NERL for RP3

    This document sets out guidance to NERL from the CAA in preparing its Business Plan for Reference Period 3 (2020 to 2024).

    This consultation document sought views from interested parties on the Business Plan guidance that should shape the CAA's approach to the future economic regulation of NERL in the period from 2020 to 2024.

    Responses to Consultation document

    • NERL
    • IATA
    • British Airways
    • Virgin
    • Prospect ATCOs Branch & ATSS Branch
    • PCS
    • CAA Pension Scheme
    • FAS Deployment Steering Group
    • Aviation Communities Forum and Stop Stansted Expansion

    Strategic themes for future regulation of NERL

    This discussion document sought stakeholder views on the CAA's proposed strategic themes for the future regulation of NERL, in order to inform the development of the CAA's approach to the regulation of NERL from 2020.

    Responses to discussion document:

    • NERL
    • British Airways
    • Virgin
    • Gatwick Airport
    • Biggin Hill Airport
    • Prospect - ATCOs Branch
    • CAA Pension Scheme
    • Local resident

     

     

     

     

     

     

     

    Modifications to Condition 2, introducing a requirement to develop a resilience plan

    CAP 1682 - Decision on modifications to Condition 2 of NATS (En Route) plc licence in respect of resilience planning, policy statement on enforcement and resilience plan guidance

    Responses to our consultation ( CAP 1639):

    • NERL
    • British Airways
    • Colin Hume, AOC Consultant
    • Prospect ATCO's branch
    • Guild of Air Traffic Control Officers


    July 2020 - NERL response to resilience plan assessment
    June 2020 - resilience plan assessment - summary report
    May 2020 - CAA approval of NERL resilience plan

    NERL capital investment

    • Interim SIP19 Independent Reviewer Report (July 2019)
    • Letter from CAA to NERL about SIP19 (May 2019)
    • Letter from CAA to NERL about SIP19 (March 2019)
    • SIP2019 Independent Review Report (March 2019)
    • Letter from CAA to NATS about interim SIP18 (October 2018)
    • Interim 2018 Independent Review Report (July 2018)
    • Letter from CAA to NATS about SIP18 (March 2018)
    • SIP2018 Independent Review Report (February 2018)
    • Letter from CAA to NATS about interim SIP17 (July 2017)
    • Interim SIP17 Independent Reviewer Report (July 2017)
    • Letter from CAA to NATS about airspace and technology programmes and SIP17 (May 2017)
    • Airspace and technology programmes Independent Reviewer Report (May 2017)
    • Letter from CAA to NATS about SIP17 (January 2017)
    • SIP17 Independent Reviewer Report (January 2017)

    Modifications to Conditions 10 and 10(a) - Reporting on detailed airspace and technology programmes

    Condition 10 of NERL's licence requires it to provide a business plan, service and investment plan and periodic reports. After consultation we modified Condition 10 to require NERL to produce detailed technology and airspace plans for RP2 (2015-19) and outline programmes for RP3 (2020-24) as well. At the same time we removed the requirement for it to produce plans on raising the UK transition altitude (TA) and the implementation of the London Airspace Modernisation Programme (LAMP). Our consultation documents, as well as previous documents relating to Conditions 10 and 10(a) are below:

    • CAP 1418 - Decision on modifications to NATS (En Route) plc licence in respect of certain planning and reporting requirements under Conditions 10 and 10a (June 2016)
    • CAP 1405 - Proposal to modify NATS (En Route) plc licence in respect of certain planning and reporting requirements under Conditions 10 and 10a: Notice under section 11(2) of the Transport Act 2000 (May 2016)
    • Responses to CAP 1405:
      • NERL
      • LACC (Heathrow)
      • British Airways
      • Virgin
      • Prospect - ATCOs branch
      • Gatwick Area Nightflight Nightmare
      • Mr Henderson
    • CAP 1362 - Decision on modification to NATS (En Route) plc licence in respect of reporting of certain plans under Condition 10a (December 2015)
    • CAP 1352 - Proposal to modify NATS (En Route) plc licence in respect of reporting of certain plans under Condition 10a: Notice under section 11(2) of the Transport Act 2000 (November 2015) See the response from NERL.

    Advice to the Secretary of State for Transport on licence duration

    Advice to the Secretary of State for Transport on extending the length of the notice provisions for termination in the Air Traffic Services licence.

    • Section 16 Advice
    • Independent Europe Economics report

    UK National Supervisory Authority report on costs exempt for RP2 (2015-19)

    As part of the European SES performance scheme - member states can submit reports on costs exempt from cost-sharing. Below is the UK's report for RP2, which includes amounts for variances in Eurocontrol, spectrum and agency costs.

    • UK NSA costs exempt report for 2015 (November 2016)
      • Annex A - National pension regulations and accounting regulations
      • Annex B - Mitigating actions taken to control cost risk
      • Annex C - Calculations of adjustment mechanism - exchange rates
      • Annex D - Breakdown of 2015 actual costs of Eurocontrol Agency
      • Annex E - Eurocontrol multi-lateral agreement

    UK National Supervisory Authority report on costs exempt for RP1 (2012-14)

    As part of the European SES performance scheme - member states can submit reports on costs exempt from cost-sharing. Below is the UK's report for RP!, which includes amounts for variances in Eurocontrol, spectrum and agency costs.

    • UK NSA costs exempt report for RP1 (September 2015)
      • Attachment 1 - National pension regulations and accounting regulations
      • Attachment 2 - NATS defined benefit scheme
      • Attachment 3 - Mitigating actions taken to manage cost risk

    Licence modifications in respect of governance and ring-fencing

    In our Ad Hoc Review of NATS-related risks in 2012/13, we found that the current arrangements for governance and ring-fencing may need to be strengthened to ensure that users are adequately protected from risks which arise outside of the regulated business.

    We consulted on initial proposals to modify these arrangements, and have now published our decision to modify NERL's licence.

    • CAP 1380 - Decision on modifications to NATS (En Route) plc licence in respect of Governance and Ring-fencing (March 2016)
    • CAP 1368 - Final proposals on modifications to NATS (En Route) plc licence in respect of Governance and Ring-fencing (February 2016)
    • CAP 1287 - Initial proposals on modifications to NATS (En Route) plc licence in respect of Governance and Ring-fencing (April 2015)

    Responses to consultation:

    • easyJet
    • Heathrow Airport
    • NATS
    • NATS unions

    RP2 2015 - 2019 Price Control Licence Conditions

    • CAP 1252 - Decision on the modification of NATS (En Route) plc licence to transpose the UK-Ireland FAB Performance Plan for 2015-2019 (January 2015)
    • CAP 1254 - Decision on modifications to NATS (En Route) plc licence in respect of the Oceanic price condition for 2015-2019 (January 2015)
    • CAP 1249 - FAS Deployment Facilitation Fund (January 2015)
    • CAP 1253 - Decision on modifications to NATS (En Route) plc licence in respect of reporting and Specified Services  (January 2015)
    • Flight efficiency metric calculation and annual review protocol (January 2015)

    Proposals to modify licence conditions

    • CAP 1816 - Proposal to modify Condition 6 (regulatory accounting requirements) of NATS (En Route) plc air traffic service licence (June 2019)
    • CAP 1639 - Proposal to modify Condition 2 of NATS (En Route) plc licence in respect of resilience planning, policy statement on enforcement and consultation on draft guidance (February 2018).
    • CAP 1229 - Proposal to modify the NATS (En Route) plc licence to transpose the UK-Ireland FAB Performance Plan for 2015-2019: Notice under section 11(2) of the Transport Act 2000 (November 2014)
    • CAP 1230 - Proposal to modify the NATS (En Route) plc licence in respect of the Oceanic price condition for 2015-2019: Notice under section 11(2) of the Transport Act 2000 (November 2014)
    • CAP 1242 - Proposal to modify the NATS (En Route) plc licence in respect of reporting and Specified Services: Notice under section 11(2) of the Transport Act 2000  (November 2014) 
    • Responses to proposals to modify licence:
      • NERL
      • Heathrow Airport

    Licence enforcement guidance & prioritisation principles

    In May 2015, after consultation, we published Economic Licensing Enforcement Guidance covering our approach to enforcing the NATS Licence and airport economic licences under the Civil Aviation Act 2012. The guidance outlines the legal framework in which our work fits and informs stakeholders of the enforcement powers we have and how we will use them.

    • Economic Licensing Enforcement Guidance (May 2015)

    After consultation, we also published prioritisation principles that explain our approach in deciding which pieces of work to take forward in the areas of consumer protection, competition law and economic regulation.

    • Prioritisation Principles for the CAA's Consumer Protection, Competition Law and Economic Regulation Work (May 2015)

    Link to work on contestability of Terminal Air Navigation Services (TANS)

    • The work of the CAA, at the request of the Department for Transport, to assess the contestability of the market in provision of ANSP terminal services in the UK

    Oceanic price control

    • Oceanic industry seminar 1 September 2014: Meeting note and presentation (September 2014)
    • CAP 1205 - NERL Oceanic charge: Proposals for a charge cap 2015-2019 - consultation document (July 2014)
      • NATS response
      • IATA response
      • BATA response
      • British Airways response
      • Virgin response
      • NATS Unions response    

    Economic regulation for Reference Period 2 under the Single European Sky (2015-2019)

    Final UK-Ireland FAB Performance Plan submitted to European Commission

    • Corrigendum to the UK-Ireland FAB Performance Plan for RP2 (November 2014)
    • Final UK-Ireland FAB Performance Plan for RP2 (2015-19) submitted to the European Commission

    Post-consultation Performance Plan (NSA initial submission to State)

    • FAB Performance Plan: UK-Ireland FAB - Second reference period (2015-2019) (May 2014)
    • UK-Ireland RP2 performance plan supporting document  (May 2014)
    • Responses to consultation on draft UK-Ireland FAB performance plan for RP2 (April 2014)
      • Airline community
      • Airline community position on opex contingency   
      • ATC Branch - Impact
      • CAA Pension Scheme   
      • Dublin Airport Authority
      • GATCO  
      • IAA PSEU
      • Manchester Airport Group  
      • NATS
      • NATS Trade Unions
      • Trustees of NATS Sharetrust  
      • Virgin   

    Transcript and presentation from Stakeholder Consultation meeting

    • RP2 Stakeholder Consultation meeting 14 March 2014 - transcript (March 2014)
    • UK-Ireland FAB Performance Plan for RP2 - Stakeholder consultation (March 2014)

    Draft performance plan published for consultation

    • Draft UK-Ireland RP2 Performance Plan - Consultation document (February 2014)  
    • FAB Performance Plan: UK-Ireland FAB - Second Reference Period (2015-2019)  - template  

     Consultancy reports

    • GAD analysis of pension costs for CAA's RP2 price control review of NERL (March 2014)
    • NERL non-staff opex review - report by Capita for the CAA
    • Assessing the efficiency of NERL's total employment costs in RP2: a research report for the CAA - report by IDS
    • Estimating the cost of capital for NERL - report by pwc for the CAA
    • What is the cost of capital for NATS (En Route) plc for RP2? - a report for NERL by Oxera
    • NERL RP2 capex review - phase 1 report by Arup and Helios (January 2014)
    • NATS cost allocation - final report by CEPA and BDO (October 2013)

    London Approach

    • CAP1158 - Regulatory treatment of London Approach charges in Reference Period 2 (2015-2019) of the Single European Sky Performance Scheme: CAA conclusions (February 2014)
    • Regulatory treatment of London Approach charges in Reference Period 2 (2015-19) of the Single European Sky performance scheme  (October 2013)
      • Responses:
        • NERL
        • Airlines for America
        • British Airways
        • Heathrow Airport
        • IATA

    UK Terminal Air Navigation Services (TANS)

    • CAP1157 - The CAA's approach to the regulation of terminal air traffic service in RP2  (February 2014)
    • Approach to terminal air navigation services regulation in RP2 - a consultation (December 2013)
      • Responses:
        • NSL
        • British Airways
        • GATCO
        • Heathrow Airport
        • IATA
        • Manchester Airport Group
        • Prospect/PCS
    • Terminal Air Navigation Services - draft RP2 Business Plan (December 2013) 
    • UK TANS charge benchmarking - consultancy report by Capita for CAA (December 2013)

    Other

    • RP2 airline community - Special interests paper (December 2013) 
    • In focus - developing the UK-Ireland performance plan for RP2 - December 2013 update  
    • RP2 Revised Business Plan (2015-2019) (October 2013)
    • Appendices to RP2 Revised Business Plan (October 2013)
    • Agreed modifications to the requirements following publication of PRB recommendations for EU-wide targets (October 2013)
    • RP2 Customer Consultation working group: Report from co-chairs (September 2013) 
    • Letter to NERL setting out CAA requirements for NERL Revised Business Plan (RBP) (September 2013)
    • The CAA process update for the economic regulation of NERL and contribution to the UK-Ireland FAB Performance Plan for Reference Period 2 (2015-2019) of the Single European Sky Performance Scheme: A mandate for Customer Consultation between NERL and airspace users  (April 2013)
    • A consultation on the CAA's process for developing economic regulation for Reference Period 2 under the Single European Sky (July 2012)
      • Responses:
        • NATS
        • BAA
        • British Airways
        • FABEC
        • Gatwick Airport
        • IATA
        • Prospect/PCS
        • Ryanair
      • Workshop

    Links to older price control reviews

    • Documents from the CP3 review (2011-2014) and CP2 review (2006-2010) are available on the National Archives website  

    Monitoring and Enforcement of the NATS En Route plc (NERL) Licence

    Investigation under Section 34 of the Transport Act 2000: Project Palamon (February 2021)

    We undertook an investigation (Project Palamon) under section 34 of the Transport Act 2000 (TA00) to consider alleged contraventions by NERL of certain statutory duties under sections 8(1)(c) and 8(1)(d) of the TA00 and certain licence conditions. This investigation followed complaints by Ryanair and Stansted Airport Limited about air traffic flow management delays experienced by airlines and passengers of Stansted and Luton airports.

    In February 2021, we published our final decision (along with Annex 1) in relation to an investigation (Project Palamon) under section 34 of the Transport Act 2000. This investigation follows an earlier investigation conducted by the CAA addressing similar complaints brought by Ryanair and Stansted in 2016 in relation to NERL's performance (Project Oberon).

    In our final decision we found that:

    • NERL contravened its statutory and Licence duties and obligations in the period January 2019 to March 2020 in relation to the provision of sufficient staffing resilience in the London Approach Service for users of Stansted and Luton airports; and
    • in relation to the other allegations raised as part of the complaints, including on airspace capacity, coding and discrimination, NERL has not contravened its statutory and Licence duties and obligations.

    In making these findings, we took into account the very difficult circumstances faced by the aviation sector and the significant reduction in air traffic volumes, following the impact of the covid-19 pandemic. We also note that forecasts for recovery are highly uncertain and it appears likely it will take some time to reach traffic levels seen in 2018 and 2019. Given these circumstances, we consider it is not appropriate for us to take formal enforcement action, as the circumstances leading to the investigation are not currently occurring. Nonetheless, we make a number of recommendations that we expect NERL (and other stakeholders) to adopt in the future as they plan how to provide a resilient service when demand begins to recover, and in the longer term.

    With the final decision we also published:

    • an annex to the final decision summarising the representations we received on the draft decision and setting out the CAA's way forward in response; and
    • non-confidential version of the responses we received to the Draft Decision.
    Palamon documents
    • Final Decision (25 February 2021)
    • Final Decision Annex 1: (25 February 2021)
    • Non-Confidential versions of responses received to the Draft Decision (Published 25 February 2021):
      • NERL
      • Ryanair
      • Stansted
      • Prospect
    • Draft Decision (17 September 2021)
      • Alongside this Draft Decision, we also published a report on the assessment of NERL delays in the London Approach service by the Performance Review Unit of Eurocontrol. This report was produced at our request in support of the investigation.

     


    Notice to NATS (En Route) plc under section 22(11) of the Transport Act 2000 (September 2020)

    Under Conditions 5 and 6 of its licence NERL has to provide regulatory accounts and certain certificates relating to its financial and operational resources and its compliance with certain conditions of its licence by 31 July each year. Because of the uncertainty with traffic forecasts due to the Covid-19 crisis, NERL was unable to provide the accounts or certificates by 31 July 2020. NERL has submitted a plan to us to provide the accounts and certificates by 31 October 2020. On 28 September we served a notice on NERL of the licence breach, but said we do not intend to make a final order in relation of the breach at present.

    • Notice to NATS (En Route) plc under section 22(1) of the Transport Act 2000 (September 2020)

    Investigation under Section 34 of the Transport Act 2000: Project Palamon (October 2018)

    We have opened an investigation (project Palamon) under section 34 of the Transport Act 2000 (TA00) to consider alleged contraventions by a licence holder of certain statutory duties under sections 8(1)(c) and 8(1)(d) of the TA00 and certain licence conditions.

    At this stage, no assumption should be made about whether there has been any contravention.

    Civil Aviation Authority Transport Act 2000 investigation - draft decision (September 2020) 

    We have published our draft decision in relation to an investigation (Project Palamon) under section 34 of the Transport Act 2000 (TA00). We have considered alleged contraventions by NATS (En-Route) Plc (“NERL”) of certain statutory duties under the TA00 and certain conditions of its Air Traffic Services Licence. This investigation followed complaints by Ryanair and Stansted Airport Limited (STAL) about air traffic flow management delays experienced by airlines and passengers of Stansted and Luton airports.

    This investigation follows an earlier investigation conducted by the CAA addressing similar complaints brought by Ryanair and STAL in 2016 in relation to NERL's performance (Project Oberon).

    In our draft decision we provisionally find that:

    • In relation to the provision of sufficient staffing resilience in the London Approach Service to users of Stansted and Luton, NERL has contravened its duties in the period January 2019 to March 2020;
    • In relation to other parts of the investigation, including on airspace capacity, coding and discrimination, NERL has not contravened its duties and obligations.

    This is a draft decision and we welcome the views of all stakeholders on our provisional findings by 19 October 2020 (to economicregulation@caa.co.uk). We will consider all the representations we receive carefully and intend to issue a final decision later this year.

    In making these provisional findings, we have taken account of the very difficult circumstances faced by the aviation sector and that air traffic volumes have reduced significantly, following the impact of the Covid-19 pandemic.  We also note that forecasts for recovery are highly uncertain and it appears likely it will take some time to reach traffic levels seen in 2018 and 2019. These circumstances suggest that it will not be appropriate to take formal enforcement action, as the circumstances leading to the investigation are not currently occurring. Nonetheless, we make a number of recommendations that we expect NERL (and other stakeholders) to take into account in the future as they plan how to provide a resilient service when demand begins to recover, and in the longer term.

    Alongside the draft decision we have also published a report on the assessment of NERL delays in the London Approach service by the Performance Review Unit of Eurocontrol. This report was produced at our request in support of the investigation. 


    Notices to NATS (EN Route) plc under section 22(11) of the Transport Act 2000 (September 2018 and November 2019)

    In July 2018, NERL submitted regulatory accounts with an audit report that did not comply with Condition 6 of its licence. Changes to audit guidance issued by the Institute of Chartered Accountants in England and Wales have meant that auditors are no longer able to express an opinion that meets the requirement under the Condition. NERL has informed the CAA that it will work with the CAA to modify Condition 6 such that a satisfactory audit report can be obtained. Condition 6 has now been modified. However, before that occurred, NERL submitted regulatory accounts that did not comply with Condition 6 of its licence in June 2019.

    • Notice to NATS (En Route) plc under section 22(1) of the Transport Act 2000 (November 2019)
    • Notice to NATS (EN Route) plc under section 22(11) of the Transport Act 2000 (September 2018)

    NATS (En Route) plc Condition 16 Code of practice (December 2016)

    • CAA approval letter
    • NERL Code of Practice

    Investigation under Section 34 of the Transport Act 2000: Project Oberon

    The CAA investigated an alleged breach of licence conditions by NERL's regarding its operation of the London Approach Service

    The CAA found that while flight delays increased in 2016, it did not fail to take all reasonable steps to meet demand or discriminate against any party in delivering the London Approach Service. The CAA has made a number of recommendations to NERL to ensure it improves its contingency planning and the resilience of its operations in the future, and will monitor NERL's implementation and the effectiveness of the recommendations going forward.

    • CAP 1578 - Investigation under section 34 of the Transport Act 2000: Project Oberon, Final Report (August 2017)
    • CAP 1551 - Investigation under section 34 of the Transport Act 2000: Project Oberon, CAA provisional conclusions (May 2017)
    • CAP 1527 - Notice of Oberon investigation (March 2017)

    Project Oberon recommended that we publish data to provide increased transparency on London Approach service quality. Three Oberon Report Indicators are included: NERL Attributable Delays by London Approach Function; NERL Average Delays per Arrival by London Approach Function; and All NERL Attributable Delays per Arrival into London Airports. We are publishing such data each quarter.

    Starting with the indicators to June 2018, the format of the report has changed. As well as graphs and data showing delay attributable to NERL's London Approach service, the report also includes graphs and data showing all delay (including non-NERL attributable delay) for each of the London Approach airports. The report is produced by NERL using data and commentary provided by NERL.

    • Oberon Report Indicators to June 2020

    Competition powers

    Information on the CAA's concurrent powers with the Office of Fair Trading under the Competition Act 1998 and part 4 (market investigations) of the Enterprise Act 2002 is available on the  Competition powers page.

    Modifications to Condition 6 – Regulatory accounting requirements

    • Decision to modify Condition 6 (regulatory accounting requirements) of NATS (En Route) plc air traffic service licence (November 2019)

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