London airport regulations in shake-up
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Heathrow, Gatwick and Stansted are to face new regulation and pricing structures from the Civil Aviation Authority (CAA) later this month.
According to the Daily Telegraph, the shake-up will stop Heathrow from increasing its landing charges of 5.9% a year above inflation and will give Gatwick more freedom to start up commercial deals.
The new rules would also replace Stansted’s formula and could reduce fares across all three although the money could be ploughed into airport development.
The initial proposals will be published on 30 April outlining the maximum landing charges per passenger for the airports, which are all now under separate owners.
The CAA’s current regulations have been criticised since the sale of Gatwick and Stansted from BAA as each airport operates differently, while the Davies Commission into airport capacity in 2015 could mean another change in two years’ time.
The report added that the CAA could benchmark charges against European airports or remove price caps. Heathrow is thought to be the only airport to remain under the current scheme while Stansted’s and Gatwick’s could change to reflect their low-cost base status and commercial arrangements.