the CAA said - Heathrow Airport
the CAA said - Heathrow Airport
the CAA said - Heathrow Airport
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CAP 1027<br />
Chapter 2: Context for <strong>the</strong> <strong>CAA</strong>'s initial proposals<br />
to, at least, <strong>the</strong> core area of <strong>Heathrow</strong> and this is likely to endure over<br />
<strong>the</strong> period April 2014 to March 2019. The <strong>CAA</strong> will publish its full MPT<br />
document at <strong>the</strong> end of May 2013.<br />
2.6 The <strong>CAA</strong> may include licence conditions that it considers are needed<br />
to prevent <strong>the</strong> risk of abuse of SMP as well as any o<strong>the</strong>r condition that<br />
it considers is needed to fur<strong>the</strong>r <strong>the</strong> interests of users of air transport<br />
services and, where appropriate, promotes competition in, or <strong>the</strong><br />
provision of airport operation services. In particular, <strong>the</strong> <strong>CAA</strong> may<br />
include a price control licence condition that regulates prices ei<strong>the</strong>r by<br />
specifying or by approving <strong>the</strong> maximum amount that <strong>the</strong> operator<br />
may charge, if <strong>the</strong> <strong>CAA</strong> considers such a condition is necessary or<br />
expedient having regard to <strong>the</strong> risk of abuse of SMP.<br />
2.7 HAL and <strong>the</strong> airlines have standing to appeal <strong>the</strong> <strong>CAA</strong>’s January 2014<br />
decision on licence conditions to <strong>the</strong> CC subject to certain qualifying<br />
criteria being met. In <strong>the</strong> event of an appeal that meets <strong>the</strong> qualifying<br />
criteria <strong>the</strong> <strong>CAA</strong>’s decision will stand until <strong>the</strong> CC determines <strong>the</strong><br />
appeal, unless it has granted interim relief or <strong>the</strong> appeal relates to<br />
specific financial arrangements. While CC appeals should normally<br />
be determined within 24 weeks, this can be extended if a relevant<br />
appeal (on <strong>the</strong> MPT) to <strong>the</strong> Competition Appeal Tribunal (CAT) is<br />
ongoing.<br />
2.8 In deciding how to regulate an airport operator, <strong>the</strong> <strong>CAA</strong> is required to<br />
follow its duties set out in <strong>the</strong> Act. In addition to its primary duty<br />
explained above, <strong>the</strong> <strong>CAA</strong> must also have regard to a range of o<strong>the</strong>r<br />
matters. These include <strong>the</strong> need for each airport operator to finance<br />
<strong>the</strong> provision of airport operation services in its licence area; and<br />
better regulation principles.<br />
Cargo<br />
2.9 The <strong>CAA</strong>’s primary duty includes fur<strong>the</strong>ring <strong>the</strong> interests of those with<br />
rights in cargo. Around 95% of <strong>the</strong> cargo by weight that is flown in or<br />
out of <strong>Heathrow</strong> is carried in <strong>the</strong> bellyhold of passenger carrying<br />
aircraft. The interests of passengers and those with rights in cargo<br />
are, <strong>the</strong>refore, closely aligned as much that affects <strong>the</strong> cost or quality<br />
of service provided to passenger aircraft, such as <strong>the</strong> provision of<br />
runways, taxiways, air traffic services and aircraft stands, would have<br />
an impact on both passengers and those with rights in cargo.<br />
2.10 Cargo only flights at <strong>Heathrow</strong> account for 0.5% of movements.<br />
April 2013 Page 31