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OFFICIAL - Public
Consumers and Markets Group
25 September 2025
Update on the regulatory treatment of the early costs of capacity
expansion at Heathrow airport
Introduction
In January 2025, the Government announced its support for capacity expansion at
Heathrow airport (“expansion”) and asked interested parties to bring forward proposals
by the end of July 2025.
Last updated: 25 September 2025
http://www.caa.co.uk/CAP1435
http://www.caa.co.uk/CAP1469
http://www.caa.co.uk/CAP1279
http://www.caa.co.uk/CAP1332
http://www.caa.co.uk/Commercial-industry/Airports/Economic-regulation/Licensing-and-price-control/Economic-licensing-of-Heathrow-Airport/
http://www.caa.co.uk/Commercial-industry/Airports/Economic-regulation/Licensing-and-price-control/Economic-licensing-of-Heathrow-Airport/
CAP 1513 Chapter 1: Executive summary
February 2017 Page 4
Chapter 1
Executive summary
1.1 This Policy Statement sets out our decisions on the regulatory treatment
of the costs Heathrow Airport Limited (HAL) will incur in seeking planning
permission to develop a new northwest runway and capacity expansion at
Heathrow Airport.
Last updated: 27 February 2017
We received five responses,
including submissions from Heathrow Airport Limited (HAL) and representatives of the
commercial airline sector.
Last updated: 10 November 2025
Airport Limited
(“HAL”) expects to incur in advance of obtaining a Development Consent Order under the
Planning Act 2008 for the expansion of Heathrow airport.
Last updated: 19 December 2019
https://www.gov.uk/government/news/government-backs-heathrow-expansion-to-kickstart-economic-growth
https://www.gov.uk/government/speeches/realising-the-benefits-of-expansion-at-heathrow-airport
https://www.gov.uk/government/news/heathrow-airport-limiteds-third-runway-proposal-will-be-basis-for-expansion
https://www.gov.uk/government/news/heathrow-airport-limiteds-third-runway-proposal-will-be-basis-for-expansion
CAP3238 Introduction and Summary
April 2026 Page 8
OFFICIAL - Public.
Last updated: 20 April 2026
United Kingdom
Civil Aviation Authority
Economic regulation of capacity expansion at Heathrow
August 2018 Page 1 of 4
Technical information note on the CAA’s approach to
dealing with licensing issues raised by potential alternative
developers of new capacity at Heathrow Airport
The purpose of this note in the context of the CAA’s role
This note is being published by the CAA in the context of the possibility, raised by stakeholders,
that capacity expansion at Heathrow might be developed by more than one party.1 At present, it
appears to us that the most likely circumstances in which this could arise are either where HAL
and a third party come to an agreement on the development of different areas of Heathrow
airport, or where a third party makes a successful application for development consent.
Last updated: 04 November 2021
The permitted services specified in Delta’s Foreign Carrier Permit include
passenger services to and from Heathrow Airport, which is the UK’s only long-haul
international hub airport.
Last updated: 19 April 2023
CCB_A052 Board
meeting
008 Closed 18-Dec AB Request forward plan of activity from
Heathrow’s PM including how the CCB
fit into this.
Last updated: 22 October 2021
• Section 3 discusses the choice of point estimates in recent Competition and
Markets Authority (CMA) precedents, and presents results of Monte Carlo
simulation for the CoE parameters in the H7 price control.
3 HAL (2019), ‘Heathrow’s initial business plan – detailed plan’, December.
4 HAL (2020), ‘Heathrow Airport H7 revised business plan (detailed)’, December.
5 HAL (2021), ‘Heathrow Airport H7 revised business plan – update 1’, June.
6 CAA (2021), ‘Economic regulation of Heathrow Airport Limited: H7 Initial Proposals’, October.
Last updated: 11 April 2022
CAP1966, Heathrow Airport Ltd’s (HAL’s) request for Government support in the form of increased
RAB in the face of Covid-19.
Last updated: 03 November 2021
