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Virgin Atlantic Airways response: CAA Consultation on Guidance for Heathrow
Airport Limited in preparing its business plans for the H7 price control
Summary
Virgin Atlantic Airways (VAA) welcomes this opportunity to respond to the CAA on its
guidance for Heathrow Airport Limited (HAL) in preparing its business plans for the H7
price control period.
Last updated: 04 November 2021
OFFICIAL - Public
2 CHARGES PAYABLE
2.1 The operator of an airport in the United Kingdom shall, on the last day of each month, and
when invoiced by the CAA, pay to the CAA a charge of:
a) in the case of an airport in respect of which a licence has been granted in accordance
with Chapter 1 of the Civil Aviation Act 2012, a charge as specified in Table 1 for each
arriving passenger at the airport during that month for which a licence is in force; or
Table 1
Airport Charge per arriving passenger
Column 1 Column 2
Heathrow Airport Limited 8.92 pence
Gatwick Airport Limited 3.48 pence
b) in the case of an airport, other than an airport mentioned in paragraph 2.1 a), which in
the twelve months ended 31 March immediately preceding the month to which the
charge relates reported more than 500,000 arriving passengers, 2.06 pence for each
arriving passenger at the airport during that month.
2.2 The managing body of an airport shall on each occasion it makes an application
Last updated: 10 November 2025
BA and Virgin noted that at
Heathrow Airport the 2015 renegotiation of the NSL contract was done by
Heathrow Airport without any airline consultation or engagement.
Last updated: 10 April 2018
• In 2014, the CAA determined that Heathrow Airport met the CAA’s three tests for market
power citing the following evidence.1
Overview of the TRS mechanism (3/5)
HAL’s regulatory regime
• Since this market power determination, The CAA has granted HAL a licence which has
included a price control on airport charges.2
• The CAA have proposed to set regulated airport charges based on the following:3
1 CAA (2014) Market power determination in relation to Heathrow Airport – statement of reasons
2 CAA (2021) Economic licencing of Heathrow Airport
3 CAA (2021) H7 Initial Proposals
4 HAL’s Regulatory Asset Base (RAB) is designed to represent a store of value to be recovered over time through regulated charges.
1.
Last updated: 30 June 2022
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
Future Meetings Dates and Locations
The following meetings are planned:
13 January 2020 CCB are attending Constructive Engagement session, Location
Leonardo London Heathrow Airport, Bath Road, West Drayton, Middlesex, UB7 0DP
14 January 2020 CCB are attending Constructive Engagement session, Location
Leonardo London Heathrow Airport, Bath Road, West Drayton, Middlesex, UB7 0DP
20 January 2020 CCB are attending Constructive Engagement session, Location
Leonardo London Heathrow Airport, Bath Road, West Drayton, Middlesex, UB7 0DP
21 January 2020 CCB are attending Constructive Engagement session, Location
Leonardo London Heathrow Airport, Bath Road, West Drayton, Middlesex, UB7 0DP
10 February 2020 CCB are meeting with HAL, Location Compass Centre
4.
Last updated: 20 October 2021
London (Heathrow) Airline Consultative Committee
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
Rob Toal
Civil Aviation Authority
5th Floor
11 Westferry Circus
Canary Wharf
London E14 4HD
3rd March 2020
Sent by email to: economicregulation@caa.co.uk
Re: Economic regulation of Heathrow Airport Limited (HAL): policy update and consultation on the
early costs of capacity expansion (CAP 1871)
Dear Rob,
Thank you for the opportunity to respond to the CAA’s consultation on Expansion early costs.
Last updated: 03 November 2021
Ref Date Time Location
CCB-014 21/05/18 13.00-14.00 Heathrow Airport Limited The Compass Centre Nelson
Road Hounslow Middlesex TW6 2GW.
2 of 3
2.
Last updated: 22 October 2021
In preparing our analysis and recommendations, the list
of key documents we reviewed were:
▪ Economic regulation of Heathrow Airport Limited:
working paper on capital expenditure efficiency
incentives (CAP 1951),
▪ Economic regulation of Heathrow Airport Limited:
Consultation on the Way Forward (CAP2139),
▪ Appendices to Economic regulation of Heathrow
Airport Limited: Consultation on the Way Forward
(CAP2139A),
▪ Heathrow Interim H7 Price Control: Review of HAL’s
initial submission (CAP1769A).
Last updated: 03 November 2021
Likewise, Crossrail
will further strengthen Heathrow’s dominant position by providing improved connections
between the airport and central and east London markets.
14.
Last updated: 01 November 2021
