The UK Civil Aviation Authority has received a request from an interested party for the Civil Aviation Authority to undertake a Market Power Determination (MPD) in relation to Manchester Airport, under section 7 of the Civil Aviation Act 2012 (the Act).
If the Civil Aviation Authority makes a determination that the market power test set out in the Act is met, the airport operator in question would be subject to economic regulation under Chapter I of the Act.
In the case of large airports (those serving more than five million passengers per annum) where an MPD has not previously been carried out, the Civil Aviation Authority is required to undertake an MPD if a request is received from an interested party. This is the case for Manchester Airport.
The Civil Aviation Authority's preparations are at an early stage and it is currently planning to initiate an MPD for Manchester Airport later in the year. During this period, the Civil Aviation Authority may consult with the airport operator and other relevant parties.
The Civil Aviation Authority has not reached a view on this matter and no assumption should be made at this point whether the market power test will or will not be met in relation to Manchester Airport.
Richard Stephenson, Communications Director
Andrew McConnell, Head of Media
Telephone: 0333 103 6000
1. The "market power test" has three tests that must be met:
Test A is whether the airport operator has, or is likely to acquire, substantial market power in a market, either alone or taken with other such persons as the Civil Aviation Authority considers appropriate.
Test B is whether competition law does not provide sufficient protection against the risk that the airport operator may engage in conduct that results in an abuse of the substantial market power.
Test C is whether, for users of air transport services, the benefits of regulating the airport operator by means of a licence are likely to outweigh the adverse effects.
2. Appeals against MPDs may be made to the Competition Appeal Tribunal (CAT).