The competition watchdog has “broadly found in favour” of the aviation regulator amid counter appeals over proposed Heathrow airline charges.
The Competition and Markets Authority (CMA) today published a summary of its final determination after Heathrow and three airlines – British Airways, Delta Air Lines and Virgin Atlantic – appealed a price control decision from the Civil Aviation Authority, which detailed how much the airport operator can charge airlines, per passenger for using its services.
The CMA is the appeal body for pricing decisions taken by the CAA – meaning those affected, such as airlines and airports, can challenge decisions directly.
However, the CMA pointed out that its role in such appeals is not to re-take the CAA’s decisions, but to decide whether the regulator has made specific errors in its evaluation.
A statement said: “While the CMA has broadly found in favour of the CAA, there are three aspects of its pricing decision that were remitted to the CAA for reconsideration.
“In making its final determination, the CMA will issue an order requiring the CAA to ensure that these are considered promptly.”
Details of the three aspects were not disclosed.
Kirstin Baker, chair of the CMA group making decisions on the appeals, said: “Having considered these appeals, we found that the CAA’s Heathrow price control struck broadly the right balance between ensuring prices for passengers are not too high and encouraging investors to maintain and improve the airport over time.
“There are a handful of smaller issues we have ordered the CAA to look at again and it has agreed to do this swiftly.”
The price cap was criticised by both the airport and airlines after being published in a CAA consultation. It covered charges for the price control period ending December 2026.
CAA chief economist Andrew Walker said: “We welcome the final determination by the Competition and Markets Authority that has largely supported our decision.
“It represents a good deal for consumers using Heathrow, whilst allowing the airport to efficiently finance its operations and invest in improving services for the future.”
But a Virgin Atlantic spokesperson said: “Following more than three years of regulated consultation on Heathrow charges, it’s disappointing that the CMA has largely endorsed the CAA’s decision, which did not go far enough to protect consumers from excessive charges at Heathrow.
“Heathrow airport’s repeated attempts to impose excessive charges demonstrate how the regulatory framework, including the formula used to set charges at the world’s most expensive airport, is broken.
“With fresh leadership at both the CAA and Heathrow, now’s the time for a fundamental review of how these charges are set, ensuring that customers are protected ahead of shareholders.
“Heathrow must work collaboratively with airlines to ensure it gets back to its best, so it can deliver a world class experience commensurate with being the world’s most expensive airport.”
A Heathrow spokesperson said: “We’re naturally disappointed, but it’s time to move on.
“We will do our best to deliver the outcomes that passengers told us they wanted within this tight framework.
“Going forward, the CAA needs to take more account of the views of consumers so that the settlement delivers the Heathrow experience passengers are looking for and not just higher profits for airlines.”