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H7 Initial Proposals, Final Proposals, Final Determination and price control appeals

H7 proposals, determination and documents relating to appeals

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Appeals against the H7 Final Determination

Price control appeals, April 2023

CMA’s H7 appeals

The CMA has published its final determinations on the appeals

Notice of appeals

We received Notice of Appeals to our H7 Final Decision from the following:

Applications to intervene

The CMA has received Applications for Permission to Intervene in the Appeals against our H7 Final Decision from the following:

CAA Response to Notices of Appeal

The CAA has published its Response to the Notices of Appeal against our H7 Final Decision

Close Price control appeals, April 2023

H7 Initial Proposals, Final Proposals and Final Determination

CAP2524 H7 Final Determination, March 2023

CAP2524 sets out our final decision for Heathrow Airport Limited's (HAL) H7 price control review. It includes:

The appendices provide further information on the main issues covered in our determination:

We have also published:

Responses to CAP2524F

Responses to CAP2524G

Close CAP2524 H7 Final Determination, March 2023

CAP2365 H7 Final Proposals, June 2022

This consultation sets out our Final Proposals for the Heathrow Airport Limited's (HAL) H7 price control review. It includes:

  • This Summary document which provides an executive summary of our Final Proposals, and discusses the particular challenges and uncertainties we have carefully considering in setting the H7 price control.
  • Section 1 which discusses:
    • our passenger forecasts for H7 and our proposed form of regulation for HAL, including our intention to introduce traffic risk sharing arrangements; and
    • our proposals for implementing outcome-based regulation (OBR).
  • Section 2 which sets out:
    • our projections for each of the key price control 'building blocks' (including operating and capital  costs, charges for other services and commercial revenues) that have informed our Final Proposals; and
    • our proposals for developing stronger capital efficiency incentives;
  • Section 3 which describes:
    • our views on the WACC, financeability and the price control on airport charges;
    • related financial issues of HAL's request for a covid-19 related RAB adjustment, and the treatment of asymmetric risk; and
    • how we will modify HAL’s licence to implement our Final Proposals.
  • The appendices provide further information on the main issues set out in this consultation.
  • We have published the Price Control Model and the Cost of New Debt Indexation Model alongside the Final Proposals.  

Final Proposals

Reports by external consultants

  • CAP2366A - Business Travel Trends, Skylark Consulting Group, March 2022
  • CAP2366B - H7 Updated Beta Assessment, Flint Global, March 2022
  • CAP2366C - OBR Phase 2 Targets Assessment, Arcadis, June 2022
  • CAP2366D - Review of the CAA’s Approach to H7 Traffic Forecasting, Skylark Consulting Group, June 2022
  • CAP2366E - Review of the CAA’s proposed traffic risk sharing mechanism, Deloitte, June 2022
  • CAP2366F – H7 capex plan assessment, Arcadis, June 2022
  • CAP2366G – Review of CAA’s capex categories and delivery objectives, Arcadis, June 2022
  • CAP2366H – Review of commercial revenues, CEPA, Tailor Airey, June 2022
  • CAP2366I - Review of opex, CEPA, Tailor Airey, June 2022
  • CAP2366J – Management stretch technical annex, CEPA, Tailor Airey, June 2022

Responses 

External reports submitted by Airlines

Close CAP2365 H7 Final Proposals, June 2022

CAP2275 H7 Initial Proposals Draft Licence Modifications, November 2021

CAP2275 sets out draft modifications to Heathrow Airport Limited's (HAL) licence to show how the CAA proposes to implement the policy proposals in the October 2021 Initial Proposals for HAL's H7 price control review.

The consultation deadline has been extended to close of business on Friday 21 January 2022.

Responses to CAP2275

Close CAP2275 H7 Initial Proposals Draft Licence Modifications, November 2021

CAP2274 H7 Initial Proposals – Working paper on outcome based regulation, November 2021

CAP2274 follows on from the October 2021 Initial Proposals consultation and provides further details of the CAA's proposed approach to implementing outcome based regulation (OBR) in the H7 price control for Heathrow Airport Limited (HAL). It sets out the CAA's Initial Proposals on targets, rebates and bonuses and summarises the key proposed changes to HAL's licence.

The consultation deadline has been extended to 12 noon on Tuesday 18 January 2022.

Reports by external consultants

Responses to CAP2274

Close CAP2274 H7 Initial Proposals – Working paper on outcome based regulation, November 2021

CAP2265 H7 Initial Proposals, October 2021

This consultation sets out our Initial Proposals for the Heathrow Airport Limited's (HAL) H7 price control review. It includes:

  • This summary document which discusses our overall approach and the impact of the particularly challenging circumstances created by covid-19 on Heathrow airport, the price control review and these Initial Proposals.
    • Section 1 which discusses:
    • our proposed approach to the form of regulation for HAL, including our intention to introduce traffic risk sharing arrangements and to set a 5-year price control; and
    • our projections for each of the key price control 'building blocks' (including numbers of passengers, costs and commercial revenues) that have informed our Initial Proposals.
  • Section 2 which sets out:
    • our views on HAL's request for a covid-19 related RAB adjustment, the treatment of asymmetric risk, the WACC, finance ability and our provisional range for the H7 price control on airport charges; and
  • Section 3 which describes:
    • our proposals for developing stronger capital efficiency incentives and implementing outcome based regulation (OBR); and
    • our approach to dealing with airport charges in 2022 noting the particularly difficult and challenging circumstances that have been created by the pandemic and its impact on the CAA's H7 price control timetable.
  • The appendices provide further information on the main issues set out in this consultation.

Initial Proposals

We are also publishing, alongside these Initial Proposals, a number of supporting consultancy studies.

Reports by external consultants

  • CAP2266A - Review of H7 Opex and Commercial Revenues: Initial Assessment and Forecasts, CEPA Taylor Airey, October 2021
  • CAP2266B - HAL RBP Update: Capex plan Review, Arcadis, October 2021
  • CAP2266C - HAL RBP Update: Review of capex categories and delivery objectives, Arcadis, 2021
  • CAP2266D - H7 Forecast Review [Passenger Forecasting], Skylark, October 2021
  • CAP2266E - Estimating Heathrow's beta post Covid-19, Flint, August, 2021
  • CAP2266F - Review of Consumer Acceptability Testing Research, FTI Consulting, October 2021

Responses to the RBP Capital Plan

Responses to CAP2265 H7 Price Control

Responses to CAP2265 2022 Charges 

Close CAP2265 H7 Initial Proposals, October 2021

News from UK Civil Aviation Authority

  1. 1,616 businesses in the travel sector licensed under the ATOL scheme
    • Published on:
    • Category: News Item
  2. Regulation of Heathrow will seek to protect passengers and pave the way for sustainable growth
    • Published on:
    • Category: News Item
  3. UK Civil Aviation Authority appointed to oversee safety standards for drones
    • Published on:
    • Category: News Item