CAA consultation on airport price controls

CAA consultation (309 pages, 4.3M PDF) on airport price controls. Some consultants' reports are also available.

CAA recommends that the Government should consider removing the Competition Commission price control system for Stansted airport, "recognising that:

On unit operating expenditure, CAA relies on consultancy studies identifying potential efficiency gains of about 1 per cent a year. Taken together with hypotheses about relative price/cost trends in different sectors, an analysis showing rapid recent productivity improvement by the airports, and a view that the balance of risks favoured assuming faster wage increases, this leads CAA to assume a trend of RPI-1 for unit operating expenditure.

Responses by Monday 5 February 2007.

For further information or advice please contact Franck Latrémolière.

Filed under CAA, Price controls.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon