The UK Civil Aviation Authority has today published a consultation on proposed modifications to the licence of Gatwick Airport Limited (GAL). The purpose of these modifications is to implement the policy approach set out in our October 2020 consultation, in particular to accept a set of commitments offered by GAL as the basis of our economic regulation for the four years from 2021/22 to 2024/25.
Having considered the responses to the October 2020 consultation, the Civil Aviation Authority's view is that GAL's proposals form part of a package that is likely to be in the interests of consumers. The new commitments include:
- a price commitment with a cap of Retail Prices Index (RPI) + 0% for published charges;
- a number of detailed changes to service quality targets; and
- a minimum investment commitment of £120 million per year on average.
The document also confirms other parts of the proposed approach set out in the October 2020 consultation. These are that the Civil Aviation Authority will encourage GAL and airlines to continue working together on unresolved issues (including performance targets that can only be set once new measurement systems have been installed).
Two specific items will also be added to the ongoing monitoring of GAL's performance (these relate to the availability of seating and the average level of airline discounts) to help protect the interests of consumers. In addition, during the next regulatory period the Civil Aviation Authority plans to carry out focused assessments of specific issues, which it expects to include GAL's average discounts, new service quality targets and airfield investment.
We are inviting stakeholders to comment on the proposed modifications to GAL's licence. The consultation will close on 25 March 2021.
Link to consultation: www.caa.co.uk/cap2103
For further details contact:
Andrew McConnell, Communications Department - 0333 103 6000
Will Nathan, Communications Department - 0333 103 6000
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