The Airport Charges Regulations 2011

Examination of competition under the Airports Act 1986

23.—(1) Part 4 of the 1986 Act (economic regulation of airports) is amended as follows.

(2) In section 36(1) (interpretation of Part 4)(1)—

(a)in the definition of “airport charges” for the words from “but excluding” to “1982” substitute “but excluding excepted charges”, and

(b)in the appropriate place insert—

““excepted charges” means—

(3) In section 40 (mandatory conditions in case of designated airports)(2), in subsection (1), after “State” insert “(either in accordance with section 40A or otherwise)”.

(4) After that section insert—

“40A    Designation of certain regulated airports

(1) The Secretary of State must by order designate an airport for the purposes of section 40 if—

(a)it is a regulated airport for the purposes of the Airport Charges Regulations 2011, and

(b)the Secretary of State considers that designation is warranted on the basis of a market power examination carried out by the CAA in relation to the airport operator in accordance with section 40B.

(2) The Secretary of State must publish details of the procedure and criteria to be used when deciding whether designation is warranted on that basis.

(3) The procedure and criteria must be relevant, objective and non-discriminatory.

(4) As soon as practicable after deciding whether designation of an airport is required under subsection (1), the Secretary of State must—

(a)publish a notice setting out the reasons for this decision, and

(b)send a copy of the notice to the airport operator.

40B    Market power examinations

(1) The CAA may, whenever it considers appropriate, examine—

(a)whether an airport operator in relation to a regulated airport has, or is likely to acquire, substantial market power (whether alone or taken with such other persons as the CAA considers relevant), and

(b)if so, the nature and extent of that power.

(2) The CAA must carry out an examination under subsection (1) (a “market power examination”) if it is asked to do so by—

(a)the Secretary of State, or

(b)a person who appears to the CAA to have a sufficient interest in the examination.

(3) Subsection (2) does not apply if—

(a)the CAA has previously undertaken a market power examination in relation to the airport operator, and

(b)it considers that there has not been a material change of circumstances since the conclusion of that examination.

(4) As soon as practicable after each market power examination the CAA must—

(a)publish a report setting out its findings,

(b)send a copy of the report to the persons listed in subsection (5).

(5) Those persons are—

(a)the airport operator that is the subject of the examination,

(b)the Secretary of State, and

(c)if the examination was carried out in response to a request from another person, that person.

(6) In this section “regulated airport” means an airport which is a regulated airport for the purposes of the Airport Charges Regulations 2011.”.