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REG - Competition and Mkts - CMA final determination in Heathrow appeals

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RNS Number : 3031Q  Competition and Markets Authority  17 October 2023

CMA issues final determination in Heathrow Airport appeals

The CMA has found that the CAA was not wrong on most of the issues that were
appealed to it, but has ordered the CAA to reconsider 3 parts of its pricing
decision.

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 CMA's role in such appeals is not to re-take the
CAA's 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 CAA's 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 CMA's dedicated
webpage: H7 Heathrow Airport Licence modification appeals
(https://www.gov.uk/cma-cases/h7-heathrow-airport-licence-modification-appeals)
.

 

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