U.K. Aviation Regulator Starts Consultation on Gatwick Airport License Commitments

By Najat Kantouar

The U.K. Civil Aviation Authority has started an initial assessment on commitments offered by Gatwick Airport to extend its license for another four years, and is seeking views from the industry on this framework.

The U.K. aviation regulator said Friday that the consultation will review Gatwick's commitments to airlines on charges, investment and service quality in order to extend its license by four years to March 31, 2029.

Gatwick is offering to cap airline charges for the period April 1, 2025 to March 31, 2029 at less than 1% for the first two years, and then follow the consumer price index for the final two years. The current cap follows the retail price index.

The airport also plans to continue its current commitment to invest a minimum of 120 million pounds ($153 million) a year on average over the 10-year period through to 2029.

Additionally, it is proposing to introduce financial incentives around arrival waiting time and performance of assisted services.

The CAA said its initial view of the proposal is that it is likely to be in the interest of consumers, but that it will be in a better position to make a final decision once it has received further evidence on the commitments.

The consultation period will be open until Sept. 20 and the regulator said it expects to make a decision in Autumn this year.

Gatwick Airport is majority owned by Vinci Airports with a 50.01% stake, with the rest owned by a group of investors managed by Global Infrastructure Partners.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

August 09, 2024 03:34 ET (07:34 GMT)

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