Regulator says more capacity at West Sussex airport would increase competition and choice for passengers. There are “benefits to consumers” of Gatwick airport expansion despite the potential of a third runway at Heathrow, the aviation regulator has said.
The Civil Aviation Authority (CAA) made the comments as it announced support for the West Sussex airport’s proposed new commitments over the next four years. Heidi Alexander, the transport secretary, has a deadline of Thursday for her decision on whether to approve Gatwick’s plan to bring its emergency runway into routine use. This would enable the airport to be used for 100,000 more flights a year.
The chancellor, Rachel Reeves, gave her backing for Heathrow’s third runway project in a speech on growth last month. The CAA said: “We have considered the implications of the recent government announcement in relation to the development of a third runway at Heathrow airport.
“Gatwick’s airline and passenger base is significantly different from that using Heathrow and we remain of the view that there are likely to be benefits to consumers in expanding capacity in Gatwick, including in relation to meeting the demands of passengers in the choice of destinations, enhanced competitive pressure on airlines and the greater resilience of airport infrastructure.”.
On Tuesday, the CAA published its final proposals to accept new commitments from Gatwick for the four years from the start of the next financial year. This includes a price cap that limits how much Gatwick can charge airlines. Under the proposal, the maximum increase in the cap for the first two years of the period would be CPI – the consumer prices index measure of inflation – minus 1%, and CPI plus 0% for the final two years.
The airport also plans to change service quality targets and rebates with a focus on areas of operation that “have been problematic in recent years”, the CAA said. This would involve an enhanced measure on air traffic control performance and the introduction of financial incentives for improving some special assistance services.
Sign up to Business Today. Get set for the working day – we'll point you to all the business news and analysis you need every morning. after newsletter promotion. Selina Chadha, the group director of consumers and markets at the CAA, said: “Our focus is always to deliver in the interests of consumers while supporting growth, investment and efficiency.
“Aviation plays a vital role in the UK economy and accepting Gatwick airport’s commitments will see benefits for passengers, airlines and the airport.”. The CAA’s final proposals are based on Gatwick continuing to make progress with the expansion project. The regulator expects to set out its final decision in May or June.
