02/11/2001

Aviation Authority proposes hike to improve air travel

The UK’s Civil Aviation Authority (CAA) has unveiled proposals to raise landing charges at several of the UK’s biggest and most congested airports.

The CAA claim that the changes to the charging structure levied by airport operators will help tackle future airport congestion and to improve the quality of airport services.

Under a mandatory five-year review of airport charges at Heathrow, Gatwick, Stansted and Manchester airports, the CAA’s proposed changes will aim to strengthen incentives for new infrastructure investment and introduce measures to improve service quality.

Laying out the preferred approach for setting the upper limit on airport charges paid by airlines for the five years commencing 1 April 2003, the changes form part of a drive to reduce overcrowding and delays at Heathrow and Gatwick. The CAA seeking to reform the system of price restrictions to give the airport operator, BAA, greater incentives to invest in passenger capacity and in improving services to customers.

At Stansted and Manchester Airports, which are less congested, a more flexible price cap is proposed to protect airlines and customers while allowing the airports to develop with minimum regulatory restrictions.

The CAA originally planned to announce these proposals at the end of September, but following the terrorist attacks in the United States on 11 September decided to defer their publication.

Although the CAA indicated that it expected the operators to bear the brunt of the costs, airline operators are thought to be in no mood to see increased landing charges with the fall in passenger numbers since September 11. (SP)

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