The UK Civil Aviation Authority (CAA) has published its first consultation on the future of price and service quality regulation at Heathrow, Gatwick and Stansted airports. Informed by extensive discussions with airlines, airports, investors and other stakeholders, ‘Setting the Scene for Q6’ (which can be read online here) sets out the CAA’s initial views on how it plans to approach its review and the key issues that will shape the agenda for the work.

The document is being published against the backdrop of the Government’s intention to reform the framework for airport economic regulation by introducing a new primary duty for the CAA that unambiguously puts passengers’ interests first. The legislation will also introduce a new licence regime for airports with substantial market power, backed up by financial penalties, in line with other economic regulators. These measures should allow regulation to be tailored better to meet the requirements of passengers at individual airports.

Commenting on the announcement, Andrew Haines, CAA Chief Executive, said: “The CAA’s aim is to put passengers’ interests at the heart of our economic regulation and we are keen to ensure that our reviews at Heathrow, Gatwick and Stansted reflect the unique position of each airport. Given the importance of the reviews for the future of these airports, it is vital that everyone with an interest has an opportunity to engage with our review and have their voice heard. This will help deliver a regulatory regime that supports improvements to the passenger experience and efficient collaboration between airports and airlines, and maintain the confidence of investors.”

Under existing legislation, every five years the CAA is required to set the maximum price levels that the three airports can charge airlines, as well as imposing service quality standards, backed up by rebates to airlines if the airport fails to meet them. Today’s document is the first stage in the process to set the price and service quality levels after April 2014.