DEPARTMENT FOR
TRANSPORT News Release (034) issued by COI News Distribution
Service. 9 March 2009
Passengers'
needs are to be put first under new measures designed to improve
air passenger experience and the economic regulation of airports,
unveiled today by Transport Secretary Geoff Hoon.
Under the plans, the aviation regulator, the Civil Aviation
Authority (CAA), will be given a new primary duty to promote the
interests of passengers. Air passengers will also get a new
champion - 'Passenger Focus' - who will represent them
as they do for rail and bus users.
The CAA will also be given a new secondary duty to ensure that
airports meet their environmental obligations. The CAA will not be
asked to develop its own environmental policies but will be tasked
with ensuring that the economic regulation of airports is
consistent with existing environmental obligations placed on airports.
Transport Secretary Geoff Hoon said:
"I want to put passengers at the heart of how our airports
are run - this will help ensure that that we get the most
efficient and competitive aviation sector possible.
"The CAA has told us that their current duties lack clarity.
They ask them to further the interests of both airlines and
passengers, without saying who comes first. Today I am removing
that lack of clarity - the passenger must come first.
"Passengers have told us that although they are broadly
happy with their experience of airports, they want things like
more seating areas, more toilets, better flight information and
more baggage carousels open at busy times - these are the exactly
the kind of issues that we will expect the CAA to address in
discharging its new duty."
The new duties are part of a package which is designed to improve
the economic regulation of UK airports. The measures have been
developed based on the recommendations of a panel of independent
experts, chaired by Professor Martin Cave, who were appointed in
June 2008 to review the economic regulation of UK airports.
Other proposed measures announced today include:
* A switch to a new licensing regime for larger airports:
licensing - which is common in many regulated industries - allows
greater flexibility than the current system and will enable the
CAA to target regulatory activity where and when it is needed to
protect the interests of consumers. There will be three tiers of
licence which place varying levels of control on airports
depending on their market power.
* New and streamlined appeal processes that will improve access
to justice for those effected by regulatory decisions.
* Measures to improve outcomes for consumers by promoting the
financial and operational resilience of airports, including a
specific financing duty on CAA, and new licence conditions for
larger airports
The measures are subject to a 12 week consultation which
concludes on 1st June 2009.
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; and
- to 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 Review of the economic regulation of airports was tasked
with looking at how best to provide incentives to:
- improve the passenger experience;
- encourage appropriate and timely investment in additional
capacity to help deliver economic growth in line with wider
Government policy;
- address the wider environmental impacts of aviation from
airport development.
4. The Review has been advised by a panel of independent experts.
The members of the advisory panel, who are experts in their fields
of economic regulation, business and consumer representation are:
- Professor Martin Cave, Chair, Warwick University
- Chris Bolt, PPP Arbiter and Chairman, Office of Rail Regulation
- Sir Adrian Montague, Chairman of Friends Provident and
Non-Executive Chairman of British Energy Group.
- Philip Cullum, Deputy CEO, Consumer Focus
- Dr Anne Graham, University of Westminster
- Professor Dieter Helm, Oxford University (and Chair of
DEFRA's Academic Panel, member of the Advisory Panel on
Energy and Climate Security)
- Andrew Sentance, Member Monetary Policy Committee.
- David Gray, ex MD Networks Division Ofgem.
5. Further information about the terms of reference for the
review, biographical details of panel members, how to respond to
the proposed reforms and some clarifying comments on the purpose
of the review can be found at: http://www.dft.gov.uk/pgr/aviation/airports/reviewregulatioukairports/
Public Enquiries: 020 7944 8300
Department for Transport
Website: http://www.dft.gov.uk