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Runway Development Metrics
29
5.3 London Heathrow Airport
Figure 10.
Last updated: 04 November 2021
Room 2044, D’Albiac House
Cromer Road
Heathrow Airport
TW6 1SD
Tel: +44 (0) 20 8757 3936
Email: lavers@iata.org
Heathrow AOC Limited
Room 2040-2042, D’Albiac House,
Cromer Road
Heathrow Airport
TW6 1SD
Tel: +44 (0) 20 8745 4242
Email: Gensec@aoc-lhr.co.uk
Civil Aviation Authority
Sent by email to: economicregulation@caa.co.uk
28th March 2024
Response to Economic Regulation of Heathrow – CAP2618: Setting Future Price
Controls: Review of Approach
Thank you for the opportunity to respond to the above consultation, reviewing the CAA’s approach
to the setting of future control periods of Heathrow Airport and NERL, including lessons learnt from
the recent H7 and NR23 price control periods, (the “Consultation”).
Last updated: 15 April 2024
If you would like to discuss any aspect of this document, please contact Stephen Gifford
(stephen.gifford@caa.co.uk).
1
See CAP 1510 Economic regulation of the new runway and capacity expansion at Heathrow airport:
consultation on CAA priorities and timetable www.caa.co.uk/CAP1510.
2
See CAP 1383 Strategic themes for the review of Heathrow Airport Limited’s charges (“H7”) A discussion
document www.caa/CAP1383.
3
See CAP 1540 Guidance for Heathrow Airport Limited in preparing its business plans for the H7 price control
www.caa.co.uk/CAP1540.
Last updated: 30 June 2017
While noting that such an
arrangement could have obvious benefits in the interim period, we would caution the CAA against
considering this as an alternative to introducing long term competition at Heathrow Airport.
Last updated: 04 November 2021
Given the monopoly power that Heathrow Airport currently holds, it is vitally
important that the CAA maintains regulatory arrangements that hold the airport to
account on its service level and performance.
Last updated: 04 November 2021
This requires larger downward adjustments from the airport groups to
appropriately reflect risk at Heathrow.
Last updated: 15 May 2025
This is likely to
add delay, and potentially cost, to the delivery of expansion projects.
31 See http://www.caa.co.uk/cap2605
32 See Airports Commission: final report
33 See Airports National Policy Statement: new runway capacity and infrastructure at airports in the Southeast of England
34See The recovery of costs associated with obtaining planning permission for a new northwest runway at Heathrow Airport:
final proposal (2016), Economic regulation of the new runway and capacity expansion at Heathrow airport: consultation on CAA
priorities and timetable (2017), Consultation on core elements of the regulatory framework to support capacity expansion at
Heathrow (2017), Economic regulation of capacity expansion at Heathrow: policy update and consultation (2017), Economic
regulation of capacity expansion at Heathrow: policy update and consultation (2018), Final report on airport-airline engagement
on new runway capacity at Heathrow airport and proposals for further engagement and
Last updated: 25 February 2025
It appears
from the text that CAA anticipates that Heathrow Airport Ltd (“HAL”)’s funding proposal will be
based on a RAB (“Regulatory Asset Base”) Model.
Last updated: 04 November 2021
We welcome the reference to other stakeholder views in the CAA’s consultation document
regarding the economic regulation of the early costs of capacity expansion at Heathrow
Airport, and the opportunity to express our views directly.
Last updated: 03 November 2021
Future of service quality regulation for Heathrow Airport Limited: Consultation on the design
principles for a more outcome-based regime (CAP 1476)
Dear Rob,
British Airways (BA) welcomes the opportunity to respond to the CAA’s consultation on the future of
service quality regulation for Heathrow Airport Limited (HAL), and the design principles for a more
outcome-based regime.
Last updated: 04 November 2021
