Economic regulation of Heathrow: working paper on the efficiency of HAL’s capital expenditure during Q6

Overview

This working paper discusses our approach to reviewing Heathrow’s Airport Limited (HAL’s) capital expenditure (capex) incurred during the Q6 price control. In particular, it includes:

• a recap of our previous work in this area;
• our method for selecting a sample of projects for review and a summary of the findings of our consultants (Arcadis) on whether there is evidence of inefficiency in relation to these projects;
• our proposed approach to reviewing these findings including in the context of broader issues; and
• the next steps.

Consultation document

• Economic regulation of Heathrow: working paper on the efficiency of HAL’s capital expenditure during Q6 (CAP1964)

Views invited

We welcome views on any of the issues raised in this working paper.

Please e-mail responses to economicregulation@caa.co.uk

We expect to publish the responses we receive on our website as soon as practicable after the period for representations expires. Any material that is regarded as confidential should be clearly marked as such and included in a separate annex. Please note that we have powers and duties with respect to information under section 59 of the Civil Aviation Act 2012 and the Freedom of Information Act 2000.