Economic regulation of Heathrow Airport Limited from January 2020: notice of proposed licence modifications

Overview

The current regulatory controls on the charges and services that Heathrow Airport Ltd (HAL) offers to airlines are due to expire on 31 December 2019 and already include a one-year extension to the previous Q6 price control.

This document gives formal notice under section 22(2) of the Civil Aviation Act 2012 (CAA12) of our proposal to modify Heathrow Airport Limited’s (HAL) economic licence to: 

•  extend the current price control by a two year interim period, up to 31 December 2021, taking account of the commercial arrangement between HAL and certain airlines for this period;
•  include a new licence condition to promote economy and efficiency; and 
•  make minor changes to update the price control arrangements, remove obsolete terms and make a change to HAL’s regulatory audit requirements to reflect current auditing guidelines. 

This statutory consultation follows on from our consultation on the regulatory framework to support capacity expansion at Heathrow in March 2019 (see CAP 1782) and our consultation on interim price control arrangements in February 2019 (see CAP1769).