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Expanding Gatwick as well as Heathrow would benefit consumers, says CAA Expanding Gatwick as well as Heathrow would benefit consumers, says CAA
(about 2 hours later)
Regulator says more capacity at West Sussex airport would increase competition and choice for passengers Regulator says bringing emergency runway into operation would boost competition and passenger choice
There are “benefits to consumers” of Gatwick airport expansion despite the potential of a third runway at Heathrow, the aviation regulator has said. Gatwick airport’s expansion has received the backing of the UK’s aviation regulator, which argued it would bring “benefits to consumers” even with the prospect of a third runway at Heathrow.
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. The Civil Aviation Authority (CAA) announced its support for the West Sussex airport’s proposed new commitments for the next four years, saying they would increase choice for passengers.
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.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 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. The CAA said it had considered the implications of a third runway at Heathrow airport on its fellow London hub.
“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.” It argued: “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. A third runway at Heathrow is likely to cost far more than the last estimate of £14bn and would cause more noise, pollution and disruption – as it involves demolishing hundreds of homes, lowering the M25 for the new runway to cross, rerouting rivers and building parking for nearly 50,000 cars.
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. By comparison, the Gatwick expansion would be much simpler. The current relief runway would be shifted 12 metres to the north but the project would stay within the airport’s existing footprint. The cost is estimated at a more modest £2.2bn because it makes better use of existing infrastructure.
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. The CAA’s comments came as part of 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 the airport can charge airlines.
This would involve an enhanced measure on air traffic control performance and the introduction of financial incentives for improving some special assistance services. Under the proposal, the maximum increase in the cap for the first two years would be the consumer prices index (CPI) measure of inflation minus 1%, and CPI for the final two years.
Gatwick 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.
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This would involve an enhanced measure on air traffic control performance and the introduction of financial incentives for improving some special assistance services.
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.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.”“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.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.