CMA final determination in Heathrow appeals

CMA issues final determination in Heathrow Airport appeals

The CMA has found that the CAA was not wrong on most of the issues that were appealed to it, but has ordered the CAA to reconsider 3 parts of its pricing decision.

The Competition and Markets Authority (CMA) has today published a summary of its final determination after Heathrow Airport and 3 airlines - British Airways, Delta Air Lines, and Virgin Atlantic Airways - appealed a price control decision from the Civil Aviation Authority (CAA), which details how much the airport operator can charge airlines, per person, for using its services.

The CMA is the appeal body for pricing decisions taken by the CAA meaning those affected, such as airlines and airports, can challenge decisions directly to the CMA. The CMA's role in such appeals is not to re-take the CAA's decisions, but to decide whether the regulator has made specific errors in its evaluation.

While the CMA has broadly found in favour of the CAA, there are 3 aspects of its pricing decision that were remitted to the CAA for reconsideration. In making its final determination, the CMA will issue an order requiring the CAA to ensure that these are considered promptly.

Kirstin Baker, Chair of the group making the decisions on the appeals, said:

"Having considered these appeals, we found that the CAA's Heathrow price control struck broadly the right balance between ensuring prices for passengers are not too high and encouraging investors to maintain and improve the airport over time.

"There are a handful of smaller issues we have ordered the CAA to look at again and it has agreed to do this swiftly."

Details on the final determination can be found on the CMA's dedicated webpage: H7 Heathrow Airport Licence modification appeals.