London Gatwick responds to the CAA’s final proposal for the regulation of Gatwick airport after April 2014

Posted: 3 October 2013 | Gatwick Airport | No comments yet

“The CAA’s proposal to take forward our Commitments framework would deliver an improved future outcome…”

  • London Gatwick cautiously welcomes the CAA’s endorsement of Gatwick’s proposed Commitments framework as a way to deliver better service levels, facilities and prices for passengers and airlines
  • London Gatwick looks forward to working with its airline partners and to competing strongly for business
  • By working more efficiently, a price of RPI + 0.5% over seven years would enable Gatwick to continue to invest and improve the airport experience

London Gatwick today cautiously welcomes the Civil Aviation Authority’s (CAA) endorsement of the airport’s proposed Commitments framework. It would mark a step in the right direction to creating a more competitive operating environment for the airport and its airline partners.

This new framework demonstrates Gatwick’s willingness to offer a good deal for airlines. It will allow further competition amongst airports by spurring innovation and will deliver a significantly improved outcome for passengers in terms of service and price.

Gatwick confirms that if the CAA eventually finds that it does not have Substantial Market Power, it will still deliver on its Commitments which will be included in the Airport’s Conditions of Use as legally enforceable contractual obligations.

Stewart Wingate, CEO of London Gatwick, said: “The CAA’s proposal to take forward our Commitments framework would deliver an improved future outcome for passengers in terms of service quality, facilities and price.

“We will now re-double our efforts to work with our airlines partners to make this work in the best interests of all parties, and in particular for passengers.”

The CAA’s recommended price level of RPI + 0.5 % over seven years equates to an increase in core airport charges from £8.80 per passenger by April 2014 to £9.11 in 2020/21, ensuring Gatwick’s prices remain highly competitive. Furthermore, the Commitments framework allows for the negotiation of individual airline contracts at lower prices.

Gatwick will now review the CAA’s final decision in more detail and respond fully in due course.

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