The aviation regulator is to consult with the industry over Gatwick’s plan to extend undertakings to airlines for four years.
The Civil Aviation Authority will consider whether the airport’s proposals to extend its commitments, including a revised price cap and a minimum £120 million annual investment, are in the interests of consumers.
The CAA is now seeking views from the industry on this framework and its initial assessment, “which will inform the way forward for the economic regulation” of Gatwick.
The consultation period will be open until September 20.
The current set of commitments were introduced in April 2021 and run until March 31, 2025.
Gatwick has proposed an extension of the commitments until March 31, 2029.
The proposal includes:
- A revised price cap for the extension period – two years of Consumer Prices Index (CPI) -1% followed by two years of CPI + 0%;
- A process to review the current service quality targets and rebates;
- A continuation of the current commitment which requires Gatwick to invest a minimum of £120 million a year, on average, over a 10-year period from 2019-20 to 2028-29.