Press Release

Gatwick reaches deal with airlines to extend price controls

31 March 2011

  • Price control extension welcomed by Gatwick
  • Deal creates benefits for passengers, airlines and the airport
  • Gatwick is competing to grow and delivering great service

Gatwick Airport Limited today welcomed the Civil Aviation Authority’s (CAA) decision to extend the current price control period (Q5) to include 2013/14.  

As the airport competes to grow and become London’s airport of choice, the extension will enable Gatwick to build on its strong performance since being acquired by a consortium led by Global Infrastructure Partners in December 2009. The additional year will also allow the CAA time to consider how Gatwick has been competing since the change of ownership and the benefits created for airlines and passengers.

Gatwick Airport Limited has agreed the terms of the extension directly with its airlines through a commercial negotiation facilitated by the regulator, rather than having the CAA impose a solution.

Gatwick’s revised capital investment programme, with increased efficiency and greater focus on delivering the best outcomes, has enabled Gatwick Airport Limited to agree a price increase no higher than RPI-0.5% in 2013/14 rather than the RPI+2% allowed in the current regulatory formula. The airlines have agreed that certain capital expenditure triggers are no longer appropriate.

Kyran Hanks, Director of Strategy and Regulation at Gatwick Airport Limited said:

"We are very pleased to have agreed a revised price cap with our airlines for the one year extension, which creates certainty and will result in our prices going down in real terms in 2013/14. 

“We believe this represents a good deal for our passengers, airlines and the airport and demonstrates that we can successfully establish commercial arrangements with our airlines, facilitated by the CAA. This approach is welcomed and we hope this could be a model for the next regulatory review. 

"Taken together with the Competition Commission's announcement on the sale of Stansted, this agreement points the way to increased competition between the London airports and further benefits for passengers.”

ENDS

Any investor relations enquiries please contact Ben Nolan on +44 (0) 1293 502589 or  ben.nolan@gatwickairport.com.

Media enquiries to

GATWICK AIRPORT PRESS OFFICE
+ 44 (0) 1293 505000
gatwickmedia@gatwickairport.com 

For further information on Gatwick Airport see www.gatwickairport.com or follow us on Twitter at www.twitter.com/Gatwick_Airport

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