BAA Ltd

Book excerpt: The Commission's report makes recommendations to the Civil Aviation Authority on the maximum level of airport charges that can be levied at Heathrow and Gatwick airports for the five year period 2008-2013, as well as examining whether either company operated against the public interest in the charges they levied during the period 2002-2007 or through other operational activities. On the basis of the assumptions set out in the report, the Commission recommends i) a maximum opening yield of £10.19 per passenger at Heathrow with charges subsequently increasing at no more than RPI +7.5; and ii) a maximum opening yield of £5.50 per passenger at Gatwick with charges subsequently increasing at no more than RPI -0.5. The recommended levels are significantly below those put forward by BAA, although they are above those proposed by the airlines. The Commission argues that these charges will enable BAA to implement its plans to improve facilities and levels of service at both airports for the benefits of airlines, passengers and other airport users.