REG - Civil Aviation Auth. - UKCAA consults on Gatwick Airport commitments

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09/08/2024 08:15

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RNS Number : 7829Z  Civil Aviation Authority  09 August 2024

UK Civil Aviation Authority consults on Gatwick Airport Limited's commitments

 

The UK Civil Aviation Authority (CAA) has today (9th August 2024) published
an initial assessment of proposals from Gatwick Airport Limited (GAL) to
extend the set of 'commitments' it makes to airlines by a period of four
years.

 

This consultation considers the views of stakeholders following an industry
consultation last summer (CAP2554
(https://urldefense.com/v3/__https:/www.caa.co.uk/our-work/publications/documents/content/cap2554/__;!!HEBAkwG3r5RD!_jzTPn57gnDnlDpmOBscQ8PxG3BDN-AfsQVTe7O-kB32JG7GKFF2qXI8lVobF3H0RkOPHmeSHHH04iCE1BbWxRmP0QUQ$)
), develops a framework for assessing whether GAL's proposals to extend the
commitments are in the interests of consumers and sets out our initial
assessment using this framework.

 

The UK Civil Aviation Authority is now seeking views from the industry on this
framework and its initial assessment, which will inform the way forward for
the economic regulation of GAL.

 

The consultation period will be open until 20th September.

 

-ENDS-

For further information, contact:

Andrew McConnell, Deputy Director for Communications and Engagement - 0333 103
6000

Robert Crawford, Head of Corporate Communications - 0330 138 4156

 

Notes to editors

 

1.   Gatwick Airport Limited operates under a set of 'commitments', a
legally binding contractual undertaking between GAL and its airline customers.
The current set of commitments were introduced on 1 April 2021 and run until
31 March 2025.

 

2.   This commitments framework is underpinned by an economic licence
granted by the UK Civil Aviation Authority under the Civil Aviation Act 2012.

 

3.   GAL has proposed an extension of these commitments from 1 April 2025
until 31 March 2029. GAL's proposal includes:

 

·    a revised price cap for the extension period - two years of Consumer
Prices Index (CPI) -1% followed by two years of CPI + 0%;

·    a process to review the current service quality targets and
rebates;

·    a continuation of the current commitment which requires GAL to invest
a minimum of £120 million (in 2018/19 prices) per year, on average, over a
ten-year period (from 2019/20 to 2028/29).

 

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