CAA decision on Heathrow and Gatwick price controls

Civil Aviation Authority decision (311 pages, PDF) on price controls for Ferrovial (BAA)'s Heathrow and Gatwick airports from 1 April 2008 until 31 March 2013.

The figures for cost of capital and expenditure trends follow the Competition Commission's report. Several other decisions appear close to the CAA's November 2007 proposals; however, there is a marked overall increase in the price limits, which the CAA attributes to additional investment and security expenditure, and the recovery of development costs for possible further Heathrow expansion.

Comment: Arithmetic and geometric mean returns | viewpoint: Franck addresses a cost of capital issue arising from the CAA's decision.

For further information or advice please contact Franck Latrémolière.

Filed under CAA, Price controls.

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