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Consequently, I am writing to request:
• assurance from the CAA that they regard the activity associated with the required £20m up to the
end of September is in the interests of consumers and that Heathrow should be able to anticipate
appropriate recovery of efficient costs;
• that this assurance is provided by 22 July 2025 to support our Board sanctioning the additional £10m
expenditure required by the end of September to meet the Government’s target of a DCO approval
in 2029; and
• that the CAA review the request for an increase in the H7 capital expenditure ceiling that we will
submit in July alongside our submission to Government, and consult on its approach before the end
of September.
Last updated: 13 August 2025
Instead, the airport goes through a similar capital
planning price calculation process as Heathrow may,
only the inputs, calculations and outcomes are
negotiated and settled between airports and airlines
in private commercial discussions.
Last updated: 13 March 2026
In a nutshell, the regression model compares average
ticket prices in 2016 using a sample of flights from the different London airports, namely
Heathrow, Gatwick, Luton, Stansted and City airports controlling for other factors which may
determine the difference in prices between airports.78 Importantly, the regression model
includes a Heathrow dummy variable, which indicates by how much on average ticket prices
of flights from Heathrow differ from ticket prices of flights from other airports.
Last updated: 04 November 2021
Heathrow Airport Limited Registered in England No: 01991017 Registered Office: The Compass Centre, Nelson Road, Hounslow, Middlesex TW6 2GW
Heathrow Airport Limited
The Compass Centre, Nelson Road,
Hounslow, Middlesex TW6 2GW
W: heathrow.com
Selina Chadha
Group Director for Consumers & Markets
Civil Aviation Authority
17 October 2025
Heathrow Response to CAP3173 - Update on the regulatory treatment of the
early costs of capacity expansion at Heathrow Airport
Further to our letter dated 6 October 2025 and our subsequent meeting on 8 October
2025, we set out some further submissions regarding the CAA’s position set out in
CAP3173.
Last updated: 15 December 2025
Identifying Suitable Comparator Airports
2.1 Long List of Comparators
Not all airports will make suitable comparators for Gatwick, Stansted or Heathrow.
Last updated: 03 November 2021
The purpose of this paper is to set out our latest policy thinking on the H7
strategic theme of ‘increasing airport resilience’ at Heathrow Airport and to
give stakeholders the opportunity to provide input.
Last updated: 04 November 2021
1
Setting future price controls – review of
approach: Consultation document CAP
2618
Heathrow’s response
Date: 28th March 2024
Prepared by: Heathrow Airport Limited
Status: Public
2
Introduction
1 This document sets out Heathrow Airport Limited’s (Heathrow) response to the CAA’s (Civil
Aviation Authority) consultation on ‘Setting future price controls – review of approach’,
CAP2618.
2 The price control review process that delivers the economic regulation of Heathrow has
significant knock-on impacts on the overall success and competitiveness of UK aviation, as
well as wider UK economic growth.
Last updated: 15 April 2024
At the noise-designated airports (Heathrow, Gatwick and Stansted) where the
Government sets noise controls, this policy has practical application in the mandating of
Noise Preferential Routes (NPRs), many of which were designed over 40 years ago.
Last updated: 11 October 2021
In a nutshell, the regression model compares average
ticket prices in 2016 using a sample of flights from the different London airports, namely
Heathrow, Gatwick, Luton, Stansted and City airports controlling for other factors which may
determine the difference in prices between airports.78 Importantly, the regression model
includes a Heathrow dummy variable, which indicates by how much on average ticket prices
of flights from Heathrow differ from ticket prices of flights from other airports.
Last updated: 02 November 2021
1
Heathrow Airport Limited Registered in England No: 1991017 Registered Office: The Compass Centre, Nelson Road, Hounslow, Middlesex TW6 2GW
Classification: Public
David Milford
Senior Policy Advisor
Civil Aviation Authority
5th Floor, Westferry House,
11 Westferry Circus
London E14 4HD
11 August 2025
Dear David
Economic regulation of Heathrow airport: Outcome Based Regulation Mid-Term Review
– Final Proposals
Thank you for the opportunity to provide a representation to the CAA’s final proposals
(proposals) on the Outcome Based Regulation (OBR) mid-term review.
Last updated: 13 November 2025
