Passengers' needs are to be put first under new airports
legislation published today by Transport Secretary Justine
Greening.
The draft Civil Aviation Bill will replace the current economic
regulation duties of the aviation regulator, the Civil Aviation
Authority (CAA), with a single primary duty to promote the
interests of passengers. The CAA will be given more flexibility to
set performance measures at major airports, encourage investment
in improvements and provide passengers and other airport users -
such as those sending cargo by air - with more information about
airline and airport performance.
Transport Secretary Justine Greening said:
"The end user - in this case the needs of air passengers
and businesses - must be at the heart of our transport networks.
Whether going on holiday, flying for business or transporting
goods by air, the customer experience at airports can make or
break a trip.
"By and large passengers give good feedback about
airports, but they also say they want things like more seating,
better information and additional baggage carousels at busy times
- these are exactly the matters that the CAA will be able to
address more effectively under its new powers.
"This Bill couples our commitment to make our airports
better rather than bigger with the Government's wider
agenda on better regulation. It also complements our ongoing work
to produce a sustainable policy framework for aviation, a draft of
which will be published next spring."
The draft Bill is designed to modernise the key elements of how
the industry is regulated and contribute to economic growth. It
also extends to aviation security, the 'user
pays' principle which exists elsewhere in the sector
(e.g. safety regulation). This will involve the transfer of
certain aviation security functions, such as monitoring and
enforcement, from central Government to the CAA which charges the
industry for its activities. However, the responsibility for
setting aviation security policy and making aviation security
directions to the industry will remain with the Secretary of State
for Transport. It is estimated that this move could save UK
taxpayers over £4ma year whilst seeing a better quality
service delivered.
Other measures included in the draft Bill today include:
Giving the CAA a role in promoting better public information on
customer service and environmental impacts. A switch to a new
licensing regime for larger airports: licensing - which is common
in many regulated industries - allows greater flexibility than the
current uniform system and enables the CAA to target regulatory
activity where and when it is needed to protect the interests of
consumers. New and streamlined appeal processes that will improve
access to justice for those affected by regulatory decisions.A
supplementary financing duty on the CAA which will help ensure
that efficient airport licence holders can finance their
activities. Powers for the CAA to impose a range of penalties for
breaching licence conditions (going up to 10% of an airport’s
annual turnover) to better incentivise compliance and penalise
poor performance.Removing unnecessary central Government
involvement and bureaucracy from the regulatory
process.Modernising the CAA’s governance and operations.
The Government had originally announced its intention to
introduce this Bill in the next session of Parliament, however an
opportunity has now arisen to introduce it earlier - most likely
early next year. By publishing a draft at this stage, the
Government aims to give the Transport Select Committee and wider
stakeholders the opportunity to consider the Bill before it is
brought before Parliament.
Much of the legislation surrounding aviation dates back to the
1980s and is in need of modernisation. It is possible that the
scope of the Bill may be extended before it is introduced. One
area which could be included is the reform of the Air Travel
Organisers’ Licence (ATOL), following the recently finished
consultation on measures to protect consumers better in the 21 st
century holiday market and help create a more level regulatory
playing field for businesses.
Notes to Editors
1. The CAA currently has four duties for the purposes of
economic regulation, they are: to further the reasonable interests
of users of airports within the UK, users being defined (in
section 82 of the Airports Act) as airlines, passengers and other
user of air transport services at the airport;to promote the
efficient, economic and profitable operation of such airports ;to
encourage investment in new facilities at airports in time to
satisfy anticipated demands by the users of such airports; andto
impose the minimum restrictions that are consistent with the
performance by the CAA of its functions under those sections. In
addition, the CAA also is also required to take account of
international obligations. 2. The proposals set out today will
replace these with a single primary duty and a limited number of
further duties. These are: Primary duty to promote the interests
of existing and future consumers of passenger and freight services
at UK airports, wherever appropriate by promoting effective
competition. Further duties to secure, so far as it is economical
to meet them, that all reasonable demands for airport services are
met efficiently;to ensure that licence holders are able to finance
the activities which are subject to the relevant licence
obligations;to have regard to the effect on the environment and on
local communities of activities connected with the provision of
airport services; to take account of guidance issued by the
Secretary of State, and to assist in delivery of airport
infrastructure consistent with the National Policy Statement on
Airports, unless there are compelling reasons not to do so;to have
regard to the principles of Better Regulation, any other
principles appearing to represent best regulatory practice and to
consult with stakeholders, including airlines. 3. The draft Civil
Aviation Bill: An Effective Regulatory Framework for UK Aviation
is available on the Department for Transport website:
http://www.dft.gov.uk/publications/civil-aviation-bill 4. We
currently expect this regime will apply initially to Heathrow,
Gatwick and Stansted airports 5. The CAA will be publishing an
example licence relating to economic regulation for stakeholder
views today. This licence was commissioned from the CAA by the
Transport Secretary to inform Parliamentary debate about the Bill.
It will not be subject to Parliamentary approval. The example
licence can be found on CAA’s website. Press Enquiries: 020 7944
3108 Out of Hours: 020 7944 4292 Public Enquiries: 0300 330 3000
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Contacts:
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