New runway capacity: economic regulation

Seeking views on the approach of the Civil Aviation Authority (CAA) with regard to runway expansion and cost recovery at London airports. The CAA’s suggested approach is to use a broad framework of principals that will govern future decisions. These principals are that:

• risk should be allocated to those parties who can best manage it
• commercial negotiations should be encouraged
• capacity can be paid for both before and after opening

The CAA will publish its policy statement in spring 2015.