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UK – EU Transition, and UK Civil Aviation Regulations

To access current UK civil aviation regulations, including AMC and GM, CAA regulatory documents, please use this link to UK Regulation. Please note, if you use information and guidance under the Headings below, the references to EU regulations or EU websites in our guidance will not be an accurate information or description of your obligations under UK law. These pages are undergoing reviews and updates.

The UK Civil Aviation Authority (CAA) has today published its initial assessment and consultation following a request by Heathrow Airport Limited (HAL) in July to change its approach to the calculation of HAL's regulatory asset base (“RAB”). HAL's request is for the RAB to take account of the impact of the Covid-19 pandemic on its revenues in 2020 and 2021.

The Civil Aviation Authority recognises that Covid-19 has had a severe and unprecedented effect on air traffic levels. This has resulted in revenue reductions for many organisations in the aviation industry.

In addition to the steps HAL has taken to improve its financial position in response to Covid-19, it has also made a request to the Civil Aviation Authority to adjust its RAB and future regulated aeronautical changes to help protect it from such revenue losses.

In this report, we have set out our initial assessment of HAL's request considering our duties to current and future consumers. While HAL has raised important issues that result from the Covid-19 pandemic, we do not currently consider that HAL has demonstrated that its request is a proportionate response. More broadly, we recognise that there are significant issues that we will need to consider and take account of as part of the next price control review during 2021.

We are inviting stakeholders to share their views with us as we consider our final decision on these matters and the appropriate next steps. The consultation will close on 05 November.

Consultation Link www.caa.co.uk/cap1966

-ENDS-

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