The Civil Aviation Authority has extended its existing price-fixing formula for BAA’s southeast airports until after a Government decision on whether to allow Heathrow’s fifth terminal.
The Government is expected to announce its decision on BAA’s T5 planning application within the next two years.
Under the CAA’s existing pricing formula, Heathrow and Gatwick are forced to keep any airline charge increases to 3%below the rate of inflation, while Stansted can raise fees by 1%above the rate of inflation.
The formula was originally due to expire in March 2002, but it has now been extended until March 2003, when the CAAwill set new rules.