Heathrow Reimagined has called the CAA’s latest update a positive step, as the regulator sets out proposals for stronger governance and competition.
The Heathrow Reimagined campaign has welcomed the latest update from the UK Civil Aviation Authority (CAA) on the regulation of expansion at London Heathrow Airport (LHR), calling for reforms to be introduced as early as practicable.
The CAA published its update on 9 October 2026 as it develops a new regulatory framework for Heathrow’s capacity expansion. The regulator said the aim is to ensure the programme delivers value for consumers while giving the airport sufficient certainty to invest.
CAA outlines governance, assurance and competition measures
In the update, the CAA set out proposals for stronger oversight of Heathrow’s capital investment, including enhanced governance arrangements and independent technical assurance. The regulator said the framework should strengthen incentives for Heathrow to deliver projects efficiently, manage costs and improve procurement and programme delivery.
The CAA is also considering measures to increase competition in the delivery of major expansion projects, alongside mechanisms to provide greater transparency and scrutiny of Heathrow’s investment decisions.
The latest document, CAP3313, represents a further development of the proposed framework. It builds on the CAA’s ongoing review of the regulatory approach to Heathrow’s capacity expansion, which began in July 2025, and follows its July 2026 update on the approach to regulation.
A spokesperson for Heathrow Reimagined said:
“Heathrow Reimagined welcomes the CAA’s latest update, which is an important endorsement of the need for regulatory reform at Heathrow, both for existing infrastructure and any future expansion.”
“We are particularly encouraged that the CAA has recognised the need for stronger capital governance, greater scrutiny of investment decisions and a wider role for competition across Heathrow’s infrastructure programme. Competition should be explored as broadly as possible across Heathrow’s existing assets and future developments, with Heathrow required to demonstrate where competition would not benefit consumers.”
“The CAA is also right to recognise that stronger governance must sit at the heart of the framework. Any new arrangements need meaningful powers and oversight to ensure passengers and airlines are protected from inefficient spending and poor value for money.”
Heathrow Reimagined describes Heathrow as the UK’s only hub airport and the most expensive airport in the world, arguing that passenger experience continues to decline and that the airport is becoming less competitive. The campaign is calling for urgent and fundamental reform of the regulatory model.
It argues that the current system rewards inefficiency and incentivises Heathrow’s management to overspend, because they earn higher guaranteed returns, in the form of passenger charges, on every pound of capital. The campaign says it supports expansion of Heathrow but warns that, under the current model, the Government is effectively writing a blank cheque paid for by passengers and airlines.
The campaign said it welcomed the CAA’s decision to launch a fundamental review of Heathrow’s regulatory framework, but said the review must deliver meaningful reform and ensure that expansion does not come at any cost.
To illustrate its argument, Heathrow Reimagined pointed to several examples of what it described as squandered spending. It said the refurbishment of tunnels under the runways is running over 10 years late, with costs already approaching £0.5 billion over the original budget. It also said the ongoing replacement of the outdated baggage handling system at Terminal 2 is escalating towards £1 billion in costs.
The campaign added that Heathrow paid £74,000 to cut down three trees, approximately 20 times the average cost. It said that, in the 15 years since the last detailed review by the Competition Commission, Heathrow has become the world’s most expensive airport and has failed to modernise at the same pace as its peers.
The spokesperson concluded:
“While there is more work to do, this is a positive step forward. Given the scale of investment decisions ahead, we encourage the CAA to build on this momentum and introduce reforms as early as practicable, ensuring stronger governance, greater competition and better value for consumers are embedded across Heathrow’s existing assets and future expansion plans.”
You can read the CAP3313 here.
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