Capacity expansion | UK Civil Aviation Authority

We are working closely with the Department for Transport and the industry on the expansion of capacity at Heathrow airport. We need to ensure that we develop regulatory arrangements that deal with the associated challenges, and supports capacity expansion in a timely and efficient and effective way, which furthers the interests of consumers.

Early costs of capacity expansion

CAP3201 Proposals on regulatory treatment, December 2025

This consultation (CAP3201) sets out our proposals for the recovery of early costs associated with capacity expansion. These are costs incurred by potential promoters before the Government takes a decision on whether to grant a Development Consent Order for capacity expansion at Heathrow airport. These proposals aim to provide an appropriate level of clarity and certainty for HAL on the recovery of early costs incurred in 2025 and 2026. It also further clarifies our position on other potential promoters that provided credible and appropriately mature proposals in response to the Government’s July 2025 deadline.

Supporting documents:

Letter from Yann Cambier, IAG, to Stewart Carter, CAA, 26 September 2025 - "Update on the regulatory treatment of the early costs of capacity expansion at Heathrow airport"
Letter from Heathrow Airport Limited (HAL) to Selina Chadha, CAA, 17 October 2025 - "Heathrow Response to CAP3173 - Update on the regulatory treatment of early costs of capacity expansion at Heathrow Airport"
Document: "Response to the CAA on Property", 29 October 2025
Letter from Raghbir S. Pattar, IAG, to Seline Chadha, CAA, 28 November 2025 - "Opposition to Request for Early Expansion Cost Recovery"
Letter from Mike King, HAL, to Stewart Carter, CAA, 9 December 2025 - "...updates to the view of early costs we set out in our submission in July"

Close CAP3201 Proposals on regulatory treatment, December 2025

CAP3173 Update on regulatory treatment, September 2025

This document (CAP3173) provides an update on the regulatory policy on the recovery of early expansion costs incurred by potential promoters before the Government takes a decision on whether to grant a Development Consent Order for capacity expansion at Heathrow airport

Close CAP3173 Update on regulatory treatment, September 2025

CAP3149 Consultation on regulatory policy, August 2025

In CAP3149, we are consulting interested parties on the regulatory policy on the recovery of early expansion costs incurred by potential developers before the Government takes a decision on whether to grant a Development Consent Order for capacity expansion at Heathrow airport.

The following documents and letters provide supporting information that we have used in the consultation. HAL and the Arora Group have provided their consent for us to publish these documents.

Responses to CAP3149

Close CAP3149 Consultation on regulatory policy, August 2025

Regulatory models

CAP3195 Working paper, November 2025

This document (CAP3195) is a working paper for consultation on our review of regulatory models and sets out:

the case for changing the current regulatory framework at Heathrow airport;
a framework for evaluating whether different regulatory models would be likely to further the interest of consumers; and
a “long-list” of possible alternative regulatory models and how these models might, in principle, apply to capacity expansion at Heathrow airport.

Supporting documents:

CAP3195A - Data for charts presented in CAP3195 document
CAP3195B - Steer - Capex Benchmark of terminal building projects
CAP3195C - Fundamental reform of Heathrow: Securing the right long-term model for passengers, airlines and the UK economy
CAP3195D - Jacobs - Review of Airport Charges Bespoke Analysis
CAP3195E - Fundamental reform of Heathrow: To comprehensively address the failings with the current model of economic regulation at Heathrow
CAP3195F - Fundamental reform of Heathrow: Discussion about examples of potential reform options
CAP3195G - Fundamental reform of Heathrow: Case for change - Presentation of why HAL’s claims, arguments and commissioned reports should be disregarded
CAP3195H - Final Lotus Report. Note: Notwithstanding the confidential classification of the document, the CAA has received consent from Heathrow Airport Limited and the authors of the report to publish the report in its current form.