CAA puts air passengers first
Aviation regulator the CAA, which recently raised landing fees at Heathrow and Gatwick airport, says it wants regulatory reform so it can put airport and airline passengers first.
In its submission to the Competition Commission’s enquiry into BAA’s airports – which include Stansted airport and Southampton airport as well as Heathrow and Gatwick – the CAA (Civil Aviation Authority) points out that the regulatory framework in UK aviation has remained largely unchanged for 20 years.
“There is now widespread agreement – between airlines, BAA and the regulator – that the current regulatory framework needs modernising. But there is likely to be considerable debate about the best way to do this,” says CAA group director of economic regulation, Harry Bush.
“The CAA has placed significant weight on passengers’ interests – notably in its recent decisions on investment and service quality at Heathrow and Gatwick – but the regulatory regime could be improved by placing the interests of consumers unambiguously at the heart of the CAA’s duties and by encouraging competition between airports and between airlines for their business,” Bush adds.
The CAA says it wants smarter regulation, rather than more regulation. It wants to encourage competition and tailor solutions to problems rather than extending its remit to more airports or increasing regulation.
“But we should also be clear that regulatory reform is no magic bullet – airport investments and service quality will still need to be paid for. What a reformed regulatory regime will provide, however, is the best possible framework to meet the complex and varied challenges facing UK aviation,” concludes Bush.
Last week the CAA raised landing fees at Heathrow by 23.5% and at Gatwick by 21%. It argued that this would increase service levels at the airports, cutting queues at security and leading to cleaner terminals.
Written by: Nick Purdom
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