CAA accepts Gatwick airline price cap commitments 

A price cap limiting how much Gatwick can charge airlines will ensure “real reductions” in airport charges.

But it is conditional on the airport making progress on expanding capacity. 

The statement came from the Civil Aviation Authority as it said it had accepted new commitments by Gatwick to airlines for a four-year period to 2028-29.

Changes to strengthen the airport’s current service quality targets were also accepted by the aviation regulator. 

The price cap is based on Gatwick’s current published charges and has been updated to allow for a maximum increase in price of CPI-1% [Consumer Price Index] in the first two years of the extension period and CPI+0% for the final two years. 

The price ceiling in 2025-26 is about £14.30 per passenger, excluding a permitted security cost, according to the CAA.

The decision came after transport secretary Heidi Alexander issued a ’minded to approve’ decision to bring Gatwick’s northern runway into service,  with a deadline for the final decision of October 27.

The CAA said: “The core service standards establish clear performance targets designed to strengthen Gatwick’s overall effectiveness, including in the provision of special assistance services, supporting the resilience of the airport and the on-time operation of its flights, improving passenger satisfaction with seating facilities, and securing the efficiency of the security screening of passengers and baggage processing.”

However, it added: “The regulator’s support for Gatwick’s commitments is conditional on it continuing to make progress with its plans for capacity expansion. 

“An important component of Gatwick Airport Limited’s future investment plan is its proposal to extend its current ‘standby’ northern runway, which could increase Gatwick’s maximum capacity by an estimated 13 million passengers per year.”

Gatwick chief financial officer Jim Butler said: “We welcome the CAA’s publication of our renewed licence for the four-year period from 2025-26 to 2028-29. 

“The contract recognises the support for London Gatwick’s plans to grow sustainability and stay competitive while delivering excellent passenger service. 

“Following various consultations and engagement with the CAA and Gatwick’s partners over a number of years, the commitments demonstrate our strong collaboration with airlines, allowing them to plan and grow for the future.”