The UK Civil Aviation Authority has today announced its draft decision on the regulatory treatment of early costs incurred by potential promoters of expansion at Heathrow airport.
The draft decision, which is now subject to statutory consultation, confirms the aviation regulator’s intention to allow Heathrow Airport Limited to recover efficient early costs incurred during 2025 and 2026, up to a cap of £320 million (2024 prices).
This would allow Heathrow Airport Limited to have the resources necessary to continue its work on expanding the airport. Early costs include planning and design costs which are needed to develop a credible expansion scheme at Heathrow, including preparation of material to support a future Development Consent Order application.
The decision would also allow Heathrow West Ltd to recover up to £4.3 million of early costs it had incurred up to 25 November 2025, when the UK Government announced Heathrow Airport Limited’s proposals as its preferred scheme to expand capacity at Heathrow. This is consistent with the regulator’s statutory duty to, where appropriate, promote competition in the provision of airport operation services.
As well as the cost cap, the regulator’s proposals outline strong consumer protections including the appointment of an independent technical expert to provide ongoing monitoring and assurance; requirements for the transparent reporting of costs; reopener mechanisms should there be a future change of circumstances, and a further efficiency review of these costs.
Following consideration of responses to this consultation, in the summer of 2026 the regulator will publish its final decision on early costs recovery and a statutory notice on the necessary modifications to Heathrow Airport Limited’s Licence.