CMA supports CAA decision that Heathrow price cap must fall…
The UK’s Competition and Markets Authority (CMA) has issued a verdict largely supporting the Civil Aviation Authority’s (CAA) pricing decision concerning Heathrow Airport. The CAA had previously mandated that Heathrow reduce average passenger charges from the current £31.57 per passenger to £25.43 by 2024, maintaining this sort of price until the end of 2026. Heathrow had sought to increase these charges to £40 per passenger, while British Airways, Delta Air Lines, and Virgin Atlantic Airways lobbied for charges below £20 per passenger. In its announcement last month, the CMA endorsed the CAA’s pricing strategy but highlighted the need for further consideration of minor pricing-related issues. The CMA’s final verdict was officially confirmed on October 17th. It was seen as a fair level, enabling Heathrow to encourage investors, but not over-charge passengers. Neither Heathrow nor the airlines are happy with the decision. There may be inadequacies in the regulatory framework, including the formula used to set fees at Heathrow. . Tweet Heathrow Airport must reduce passenger charges rules UK CMA Heathrow must reduce average passenger charges says UK’s Competition and Markets Authority (CMA). 19.10.2023 (International Airport Review) The UK’s Competition and Markets Authority (CMA) has issued a verdict largely supporting the Civil Aviation Authority’s (CAA) pricing decision concerning Heathrow Airport. The CAA had previously mandated that Heathrow reduce average passenger charges from the current £31.57 per passenger to £25.43 by 2024, maintaining this sort of price until the end of 2026. See May 2023 link Heathrow Airport had sought to increase these charges to £40 per passenger, while British Airways, Delta Air Lines, and Virgin Atlantic Airways lobbied for charges below £20 per passenger. In its announcement last month, the CMA endorsed the CAA’s pricing strategy but highlighted the need for further consideration of minor pricing-related issues. The CMA’s final verdict was officially confirmed on Tuesday, October 17 2023. Kirstin Baker, Chair of the group making the decisions on the appeals, said: “Having considered these appeals, we found that the CAA’s Heathrow price control struck broadly the right balance between ensuring prices for passengers are not too high and encouraging investors to maintain and improve the
