Airports have expressed disappointment over UK Civil Aviation Authority publication on airport charges. The authority says its main aim was to harmonize the wishes of both the airlines and the airport. However, the three largest airports in London are not pleased with the contents of the final decision.
Even though price caps at Heathrow and Gatwick airport seem to be below inflation, they complain that it is not low enough. They say it is better than the October 2013 proposal but it is not good enough.
In this final decision publication, the CAA states that after long term agreements the airports will no longer have substantial market power. It also states that only main airlines have the power to incorporate price discounts.
Heathrow airport CEO, Colin Mathews stated that the decision was draconian. He added that despite the decision, they will still try and make improvements on the airports for its passengers.
London Gatwick airport on the other hand is more disappointed over the reduction of cost per capital. They also complain about CAA intrusive monitoring of equipment. Just like Heathrow they say that airports should have substantial market power.
The decision removes Stansted airport from economic regulation. Though the airport had signed agreements with its airline customers, the CAA announced that Stansted no longer had substantial market power. It also stated that beginning April 2014 it would be free to compete with other airports without price regulation.
The airports say they will have to review their investment plans, to determine if their plans would work despite CAA’s final decision.
By Oliver Derek