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Capacity expansion

Information relating to our work on Heathrow capacity expansion.

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

We have published CAP3238 Draft decision on the regulatory treatment of early costs of capacity expansion at Heathrow airport and CAP3238B Draft notice of licence modification.

In 2025, the CAA commissioned Steer to conduct an initial technical and cost efficiency assessment of the capital expenditure expansion plans for Heathrow airport (CAP3238A) which we have now published alongside our draft decision document.

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:

Responses

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

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

 

Regulatory models

This document (CAP3251) is a consultation on a shortlist of regulatory models for Heathrow airport. This follows a working paper published in November 2025 (CAP3195).

This document includes:

  • an update on the case for changing the current regulatory framework at Heathrow airport;
  • an update to the framework for evaluating whether different regulatory models would be likely to further the interest of consumers; and
  • our assessment of possible alternative regulatory models and a proposed shortlist.

Supporting documents from:

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.

Responses

Scope and process

We published CAP3144 to set out the scope and process for our review of the regulatory approach to capacity expansion at Heathrow airport.