Bloomberg News

U.K. Aviation Regulator to Get Powers to License, Fine Airports

November 23, 2011

Nov. 23 (Bloomberg) -- Britain’s Civil Aviation Authority will be given new powers to promote passenger interests, including fining airports for poor performance, under proposals published today by Transport Secretary Justine Greening.

The draft Civil Aviation Bill will replace the CAA’s current economic regulation duties, the Department for Transport in London said in an e-mailed statement. The bill includes plans for a new licensing system for larger hubs, with the regulator given the authority to impose penalties of as much as 10 percent of an airport’s annual turnover.

“By and large passengers give good feedback about airports, but they also say they want things like more seating, better information and additional baggage carousels at busy times,” Greening said in the statement. “These are exactly the matters that the CAA will be able to address more effectively.”

The bill couples the coalition government’s commitment “to make our airports better rather than bigger” with a wider agenda on improved regulation, she said.

The proposals would replaced a system under which the CAA regulates and controls pricing at the biggest London airports, BAA Ltd.’s Heathrow and Stansted and Global Infrastructure Partners Ltd.’s Gatwick, which account for 60 percent of U.K. passengers. Prices and service quality at other terminals are determined by market forces.

--Editor: Chris Jasper.

To contact the reporter on this story: Eddie Buckle in London at ebuckle@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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