LONDON AIRPORT CHARGES:

COMPETITION COMMISSION INVITES EVIDENCE

The Civil Aviation Authority (CAA) has asked the Competition Commission to investigate and report on the maximum airport charges that may be levied over the five year period from 1 April 2003. The charges relate to the three London airports owned by BAA plc, namely Heathrow, Gatwick and Stansted, and cover those levied for landing and parking aircraft, and include passenger-related charges. The report will also consider whether any of these airports have acted against the public interest in any of their airport-related activities at any time since the last investigation in 1995.

The CAA’s proposals and background information are published on their website at www.caa.co.uk.

The reference has been made under the Airports Act 1986. The Commission has been asked to report to the CAA within six months.

The Commission would like to hear from interested parties, in writing, by 5 April 2002. Anyone wishing to submit evidence should write to:

The Reference Secretary (BAA)
Competition Commission
New Court
48 Carey Street
London WC2A 2JT

Or email: baa@competition-commission.gsi.gov.uk

Dr Derek Morris, Chairman of the Commission, will chair the inquiry. The other members of the group are Richard Holroyd, Professor Peter Moizer, Professor Judith Rees and Jonathan Rickford.

Notes to Editors

The reference was made by the CAA under the Airports Act 1986 on 28 February 2002 (see CAA Press Notice 6 March 2002 )
Under the Airports Act 1986, the CAA is required to refer the three London airports owned by BAA plc every five years. Following a decision by the CAA in May 1999 to extend the current price caps at the BAA London airports into a sixth year (the maximum extension the Airports Act allows) the price caps at Heathrow, Gatwick, Stansted and Manchester will each expire on 31 March 2003. New price caps will have to be set for the period from 1 April 2003 to 31 March 2008. The CAA will therefore be reviewing the BAA London airports and Manchester in parallel.
Further information can be found on the Commission’s website http://www.competition-commission.org.uk/inquiries/baa.htm
Enquiries should be directed to: Francis Royle, Press Officer, tel: 020 7271 0242

Group Members
Dr Derek Morris (Chairman)
Mr Richard Holroyd
Professor Peter Moizer
Professor Judith Rees
Mr Jonathan Rickford