the CAA said - Heathrow Airport

CAP 1027
Executive Summary
8. The CAA considers these conditions are likely to be met in the case of
HAL. Alongside this document, the CAA has published a summary of
its view that it is ‘minded to’ conclude that the MPT in the Act is met
for continuing regulation of HAL. The CAA's full MPT document will
be published at the end of May 2013. The CAA’s view is subject to
consultation and the CAA will review its position later this year.
9. HAL is the operator of Heathrow, the UK’s busiest airport, serving
around 70 million passengers per year. Heathrow is nearly twice the
size of the next busiest airport, Gatwick, by number of passengers,
and it is also the UK’s hub airport. Demand for Heathrow's services
remains extremely high. It is operating very close to full capacity with
over 99% of its slots utilised.
10. Supported by the airlines, HAL has a clear vision to be “Europe’s hub
of choice and the UK’s direct connection to the world by making every
journey better”. The CAA does not doubt HAL's or the airlines'
commitment to seek to realise this vision. The CAA welcomes the
progress made by HAL during Q5 to raise passengers' satisfaction
and improve its operational performance in those areas that were key
passenger priorities when the regulatory arrangements were
established in 2008, for example, the length of security queues.
11. Nevertheless, the CAA considers that HAL’s SMP and the lack of
effective choice available to passengers and airlines using Heathrow
present a number of risks that require continuing economic regulation
beyond April 2014. These risks include lower levels of efficiency,
higher prices, inconsistent service quality, and investments that are
less appropriate than may otherwise be the case. These risks directly
affect the range, availability, continuity, cost and quality of airport
operation services and the adverse effects of those risks are
ultimately borne by passengers and cargo owners.
12. In designing the most proportionate and effective regulatory
arrangements, the CAA has sought to understand users' priorities.
Given that over 95% of cargo traffic at Heathrow travels in the
bellyhold of passenger aircraft, the CAA considers that the interests of
cargo owners are broadly aligned with those of passengers.
Consequently the CAA considers that users' priorities are the same as
passengers' priorities. The CAA has identified passenger priorities in
three principal ways: through Constructive Engagement (CE) between
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