The UK Civil Aviation Authority (CAA) has launched a consultation on the approach to recovering early planning costs associated with the proposed expansion of Heathrow Airport.
Heathrow Airport Ltd has asked the UK Civil Aviation Authority to consider allowing its early costs, associated with submitting proposals to the Government on Heathrow expansion, to be recovered through Heathrow’s charges to airlines using the airport. The Arora Group has said that its early costs should be treated in the same way as those of Heathrow Airport Ltd.
Early planning costs could include, for example, environmental assessments, legal advice, architectural design, land surveys and public consultation activities.
The consultation examines four options for cost recovery, with safeguards to ensure only efficiently incurred costs directly related to expansion planning would be recoverable through Heathrow’s charges on airlines using the airport.
The regulator's initial view is that allowing promoters with credible and appropriately mature proposals to recover efficient early costs could benefit consumers. Competition between proposals promotes efficiency and ensures a thorough evaluation of options for this major infrastructure project. It also reduces the risk of passengers facing duplicate or wasteful spending.
The consultation is running until 10 September 2025. The UK Civil Aviation Authority expects to publish its decision on the principles and approach to the recovery of early planning costs by the end of September 2025, with decisions on related issues to follow later in 2025. This supports the timely, efficient and effective expansion of capacity at Heathrow airport, consistent with the Government’s timetable.
For more information and to respond to the consultation, visit https://www.caa.co.uk/commercial-industry/economic-regulation-and-competition-policy/heathrow-airport/capacity-expansion/