Competition Markets Authority
The Competition and Markets Authority (CMA) has today published a summary of its final determination after Heathrow Airport and 3 airlines British Airways, Delta Air Lines, and Virgin Atlantic Airways appealed a price control decision from the Civil Aviation Authority (CAA), which details how much the airport operator can charge airlines, per person, for using its services.
The CMA is the appeal body for pricing decisions taken by the CAA meaning those affected, such as airlines and airports, can challenge decisions directly to the CMA. The CMAs role in such appeals is not to re-take the CAAs decisions, but to decide whether the regulator has made specific errors in its evaluation.
While the CMA has broadly found in favour of the CAA, there are 3 aspects of its pricing decision that were remitted to the CAA for reconsideration. In making its final determination, the CMA will issue an order requiring the CAA to ensure that these are considered promptly.
Kirstin Baker, Chair of the group making the decisions on the appeals, said:
Having considered these appeals, we found that the CAAs 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 airport over time.
There are a handful of smaller issues we have ordered the CAA to look at again and it has agreed to do this swiftly.
Details on the final determination can be found on the CMAs dedicated webpage: H7 Heathrow Airport Licence