the CAA said - Heathrow Airport

CAP 1027
Executive Summary
• Part II: Condition on fees and revocation. These conditions enable
the licence to be operational and govern the arrangements for
payment of fees to the CAA and licence revocation.
• Part III: Price control conditions. These conditions will give legal
effect to the CAA’s final decisions on this issue, as well as any
relevant conditions on issues such as capital efficiency and
transparency and consultation requirements.
• Part IV: Service quality conditions. These conditions give effect to
the SQR scheme and the CAA’s policy on strengthening HAL’s
operational resilience.
• Part V: Financial conditions. These conditions relate to HAL’s
obligations to produce regulatory accounts and certain obligations
to improve its financial resilience, such as by maintaining a
continuity service plan.
• Part VI: Other conditions. There may be some potential licence
conditions that the CAA could pursue, such as provisions to revisit
the price control settlement within the period if there is a significant,
unforeseen change of circumstances.
74. The CAA will develop the HAL licence over the course of 2013. In
doing so, it will work closely with HAL, the airlines and other
stakeholders. Unlike the regulatory settlement for Q5, the licence
enables the CAA to respond to risks in the course of Q6.
75. The CAA considers that establishing the basic architecture should be
the main priority for the licence before April 2014. Therefore, it does
not aim to cover all possible issues. The CAA will need to consider
which issues should be regarded as a priority for April 2014 and which
issues should be considered after this date.
76. The CAA is required to ensure that any new licence obligations are
transparent, accountable, proportionate, consistent and targeted. This
includes adopting, where appropriate, so-called ‘sunset’ provisions to
ensure that parts of the licence do not become out of date and can be
refreshed, modified or removed in light of the interests of passenger
and market circumstances.
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