LONDON Oct 17 Britain's aviation body said it
was considering deregulating the fees which London's Stansted
Airport charges airlines, citing deals with Ryanair and
easyJet that could impact the airport's power over low
cost and charter carriers.
In December, the Civil Aviation Authority (CAA) had said
Britain's fourth busiest airport should not be fully deregulated
because of substantial market power.
The Civil Aviation Act of 2012 sets a market power test as
part of the process for periodically deciding whether a British
airport's user charges need to be regulated.
"Our aim is to protect passengers, so we will act if the
market fails. But regulation must achieve more benefits for
consumers than it costs," CAA Group Director of Regulatory
Policy, Iain Osborne, said on Thursday.
"That is why, following the airport's recent deals with
easyJet and Ryanair, it is sensible for us to consider whether
regulation remains the best thing for Stansted's passengers," he
added in a statement.
The CAA has now launched a consultation to ask stakeholders
how the two agreements affect Stansted's market power
assessment. A final determination will be published in early
2014 and the form that regulation will take for the airport will
be finalised after that.
Stansted, which lies 50 kilometres north east of central
London, agreed a 10-year deal with Ryanair to cut the fees
levied on the Irish airline in return for it increasing its
flights in September.
In June, the airport's owner, Manchester Aiports Group,
reached a deal with easyJet to more than double the carrier's
traffic at Stansted during the next five years.