the CAA said - Heathrow Airport

CAP 1027
Chapter 11: Regulatory Incentives - Service Quality
C H A P T E R 1 1
R e g u l a t o r yI n c e n t i v e s - S e r v i c e Q u a l i t y
11.1 This chapter contains the CAA’s initial proposals for incentives
attached to HAL's delivery of service quality. It first sets out the
agreements reached during CE, followed by HAL’s proposals in its
FBP. The CAA’s own assessment of service quality in Q6 is
discussed and this chapter concludes with the CAA's initial proposals
for Q6.
Background – the development of regulatory incentives
11.2 The SQR scheme was introduced by the CAA in Q4 to identify the
service standards that airlines could expect from HAL in return for the
regulated charges they paid. Where performance falls below certain
pre-determined standards, HAL is liable to repay a portion of the
charges levied to the airlines. This recognises that HAL may cut
service quality rather than striving to make genuine efficiency
improvements in responding to price cap incentives. For a similar
reason, other economic regulators also tend to set minimum service
quality standards as part of their price control determinations.
11.3 The current SQR scheme captures five areas of HAL's service quality.
All contain a number of specific sub-elements (except for the
aerodrome congestion term (ACT)).
• Passenger satisfaction - with metrics taken from HAL’s Quality of
Service Monitor (QSM) survey and covering the four elements of
flight information, cleanliness, wayfinding, and departure lounge
seating availability.
• Security queue times - with metrics based on queue times for
central search, transfer search, staff search and control posts.
• Passenger operational elements - with metrics based on the
availability of passenger sensitive equipment (PSE), track transit
systems, and arrivals reclaim (baggage carousels).
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