Heathrow Criticises CAA Price Cap

The Civil Aviation Authority (CAA) has imposed a price cap which limits how some of the UK's airports can charge airlines to use their sites.

Heathrow, Gatwick and Stanstead were all examined in the CAA's report where it imposed a much larger price cap than originally proposed.

From April, prices will only be able to rise by 1.5% below the retail prices index (RPI) measure of inflation. The CAA said this would mean prices would fall for passengers, while services for customers would also be improved.

Dame Deirdre Hutton, Chair of the CAA, explained: "Today's decisions are good news for air passengers. They will see prices fall, whilst still being able to look forward to high service standards, thanks to a robust licensing regime.

"London's airports have benefited from substantial investment over the past decade, which has created world-class facilities for passengers. But prices have risen substantially in that time, with service quality sometimes failing to match the standards passengers have every right to expect.

"We have focused on putting the passengers' interest at the heart of our decisions and today's announcement means passengers can look forward to lower prices and high service quality from London's busiest airports."

However, Heathrow Airport, which is Britain's busiest airport, has criticised the new cap, calling the measures "draconian".

Colin Matthews, Chief Executive at Heathrow Airport said: "We are concerned by the degree of change since the CAA's final proposals just a short while ago.

"In October the CAA accepted the need for changes to their April proposals, but has now reverted to a draconian position.

"We will review our investment plan to see whether it is still financeable in light of the CAA's settlement."

(JP/IT)