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RAB adjustment

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CAP2140 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, April 2021



On 27 July 2020, HAL sent us a request that we should make an adjustment to its regulatory asset base (RAB) to address the shortfall in the revenue it expected to recover in 2020 and 2021 due to the severe impact of the covid-19 pandemic on its business. Since then, HAL has made a series of further representations to us in support of its request.

CAP2140 sets out the CAA's response to HAL's request and its further representations. It provides our decision on the regulatory intervention package which we will apply ahead of making our proposals for the next (H7) price review. It follows on from our October 2020 and February 2021 Consultations on these matters.

In particular, this document sets out:

  • the process which we have followed in reaching our decision, including our consideration of stakeholders' consultation responses;
  • an updated and final assessment framework, based on our statutory duties including the “better regulation principles” which we must have regard to under the Civil Aviation Act 2012 (CAA12)
  • our assessment of the different options for regulatory intervention using that assessment framework; and
  • details of the early intervention we have decided to take and our proposed next steps.

Responses to CAP2140

Close CAP2140 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, April 2021

CAP2098 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, February 2021



In October 2020, we published a consultation document in response to the request made by Heathrow Airport Limited (HAL) in July 2020 for the CAA to change its approach to the calculation of HAL's regulatory asset base (RAB) to take account of the impact of the covid-19 pandemic.

CAP2098 and CAP2098A provide our latest views on HAL's request and our developing thinking on whether HAL's price control framework should be changed in response to the circumstances created by the covid-19 pandemic. In particular the document sets out:

  • our framework for identifying and assessing options for intervention;
  • the assessment of options, including HAL's proposal for a RAB adjustment, in the light of this framework and the views of HAL and airlines in response to the October 2020; and
  • our next steps and timetable for dealing with these matters

Responses to CAP2098

Close CAP2098 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, February 2021

CAP1966 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, October 2020



CAP1966 and CAP1966A are published in response to the request made by Heathrow Airport Limited (HAL) in July 2020 for the CAA to change its approach to the calculation of its regulatory asset base (RAB) to take account of the actual and expected impact of the covid-19 pandemic on its revenues in 2020 and 2021. It provides our initial views on HAL's request and proposes next steps for consultation.

The document sets out:

  • the background to HAL's request and the initial views of airlines in response to it;
  • our approach to assessing HAL's request;
  • our initial assessment of HAL's request; and
  • proposals for our next steps and timetable for dealing with the issues raised by the request.

Stakeholder submission published alongside this consultation

Responses to CAP1966

Close CAP1966 Economic regulation of Heathrow Airport Limited: response to its request for a covid-19 related RAB adjustment, October 2020

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