Gatwick Airport’s expansion plans have received a boost after the aviation regulator said it would give “benefits to consumers” even with the potential for a third runway at Heathrow.
The Civil Aviation Authority (CAA) expressed its support for Gatwick’s proposed commitments for the next four years.
The announcement comes as Transport Secretary Heidi Alexander faces a Thursday deadline to decide on Gatwick’s proposal to bring its emergency runway into regular operation, a move that could accommodate an additional 100,000 flights annually.
It follows Chancellor Rachel Reeves’ endorsement of Heathrow’s third runway project last month in a speech focused on economic growth.
The CAA said: “We have considered the implications of the recent Government announcement in relation to the development of a third runway at Heathrow airport.
“Gatwick’s airline and passenger base is significantly different from that using Heathrow and we remain of the view that there are likely to be benefits to consumers in expanding capacity in Gatwick, including in relation to meeting the demands of passengers in the choice of destinations, enhanced competitive pressure on airlines and the greater resilience of airport infrastructure.”
On Wednesday, the CAA published its final proposals to accept new commitments from Gatwick for the four years from the start of the 2025/26 financial year.
This includes a price cap that limits how much Gatwick can charge airlines.
Under the proposal, the maximum increase in the cap for the first two years of the period would be CPI (the Consumer Prices Index measure of inflation) minus 1 per cent, and CPI plus 0 per cent for the final two years.
The airport also plans to change service quality targets and rebates with a focus on areas of operation that “have been problematic in recent years”, the CAA said.
This would involve an enhanced measure on air traffic control performance and the introduction of financial incentives for improving some special assistance services.
Selina Chadha, group director of consumers and markets at the CAA, said: “Our focus is always to deliver in the interests of consumers while supporting growth, investment and efficiency.
“Aviation plays a vital role in the UK economy and accepting Gatwick airport’s commitments will see benefits for passengers, airlines and the airport.”
The CAA’s final proposals are based on Gatwick continuing to make progress with the expansion project.
The regulator expects to set out its final decision in May or June.
