LONDON- The Competition and Markets Authority (CMA) has released a summary of its conclusive decision following appeals by Heathrow Airport (LHR) and three airlines—British Airways (BA), Delta Air Lines (DL), and Virgin Atlantic Airways (VS)—against a price control decision made by the Civil Aviation Authority (CAA).
This decision outlines the charges the airport operator can impose on airlines for each passenger using its services.
Heathrow British and Others Loses Appeal
The CMA serves as the appellate body for pricing decisions made by the CAA, allowing affected parties, such as airlines and airports, to challenge these decisions with the CMA directly.
In such appeals, the CMA’s role is not to re-evaluate the CAA’s decisions but to determine whether the regulator has made specific errors in its assessment.
While the CMA has generally upheld the CAA’s position, three aspects of the pricing decision have been sent back to the CAA for further review. In its final determination, the CMA will issue an order to ensure that the CAA promptly addresses these specific matters.
Lawyer Insights
Kirstin Baker, who leads the group responsible for determining the appeals, stated:
After reviewing these appeals, we have determined that the CAA’s pricing framework for Heathrow generally strikes a suitable balance. It aims to prevent excessively high passenger prices while also incentivizing investors to sustain and enhance the airport’s infrastructure over the long term.
Although there are a few minor matters that we’ve directed the CAA to reexamine, the CAA has committed to doing so promptly.
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