H7 Heathrow Airport Licence modification appeals

The CMA has published its final determinations on the appeals.

From:
Competition and Markets Authority
Published
20 April 2023
Last updated
8 February 2024 — See all updates
Case type:
Regulatory references and appeals
Case state:
Open
Market sector:
Transport
Opened:
18 April 2023

Administrative timetable

Published on 26 June 2023, as required by Rule 10 of the Airport Licence Condition Appeals: Competition and Markets Authority Rules (CMA172). Any revisions made to the timetable will be published on this website.

Date Action
18 October 2023 Publication of non-sensitive version of final determinations and order
17 October 2023 Issue of final determinations to parties, and publication of summary
September 2023 Parties’ representations on provisional determinations
Early September 2023 Issue of provisional determinations to parties
July 2023 Main hearings
5 June 2023 Permissions to Intervene granted
31 May 2023 Deadline for CAA’s response to the Notices of Appeal
22 May 2023 Deadline for applications for permission to intervene
11 May 2023 Permissions to appeal granted
2 May 2023 CAA notified the CMA that it did not intend to contest the applications for permission to bring an appeal
17 and 18 April 2023 Permission to appeal sought by 4 parties

Publication of final costs determination and Order

8 February 2024: On 7 February, the CMA issued to the Parties its final determination and Order on costs in relation to the H7 Heathrow Airport licence modification appeals. Non-sensitive versions of these documents are published below.

Publication of final determinations and Order

18 October 2023: The CMA has published a non-sensitive version of its final determinations (FD) and Order in the H7 Heathrow Airport licence modification appeals.

Final determinations issued to Parties

17 October 2023: The CMA has issued its final determinations (FD) and Order to the Parties. A summary of the FD is below. A non-sensitive version of the full FD and Order will be published as soon as reasonably practicable.

Provisional determinations issued to Parties

8 September 2023: The CMA has issued its provisional determinations (PD) to the parties. The full PD will be issued to the parties for comment. A summary of the provisional determinations is below.

Permissions to intervene

7 June 2023: On 5 June 2023 the CMA granted permission to British Airways plc, Delta Air Lines Inc and Heathrow Airport Ltd to intervene in grounds raised by other parties’ appeals.

On 22 May 2023, the CMA received applications for permission to intervene in the appeals from British Airways plc, Delta Air Lines Inc, and Heathrow Airport Ltd.

CAA response

7 June 2023: On 31 May 2023, the CAA responded to the Notices of Appeal from British Airways plc, Delta Air Lines Inc, Heathrow Airport Ltd and Virgin Atlantic Airways Ltd.

Notice of extensions

16 May 2023: The CMA decided on 16 May 2023 to extend the period for the determination of the appeals by eight weeks to 17 October 2023 and to extend the deadlines by which the CAA must submit its Responses to the appeals to 31 May 2023.

Appeal group appointed

12 May 2023: The CMA has appointed a group of 3 panel members to determine the appeal.

Kirstin Baker (Chair), Juliet Lazarus and Paul Muysert

Applications for permission to intervene - leave for late submission

11 May 2023: The CMA has granted leave for submission of applications for permission to intervene by no later than 5pm on 22 May 2023.

CMA decisions on permission

11 May 2023: The CMA has granted permission to appeal on all grounds pleaded by British Airways plc, Delta Air Lines Inc, Heathrow Airport Ltd and Virgin Atlantic Airways Ltd.

Permission is granted subject to the conditions that the following common grounds of appeal are considered together across appellants:

  • RAB Adjustment
  • Cost of Capital grounds with the following sub-grounds:
    • Alleged errors in estimating the asset beta
    • Alleged errors in estimating the cost of debt
    • Alleged errors in selecting a point estimate for the WACC
  • Passenger Forecast/Forecasting

Notices of appeal

On 17 April 2023, Heathrow Airport Ltd and on 18 April 2023, British Airways plc, Delta Air Lines Inc and Virgin Atlantic Airways Ltd applied for permission to appeal against the Civil Aviation Authority’s (CAA) H7 Final Decision of 8 March 2023. The CAA’s H7 Final Decision is a decision made under section 22 of the Civil Aviation Act 2012 which sets the price control and associated regulatory framework that applies to Heathrow Airport Ltd during the H7 price control period (1 January 2022 until 31 December 2026).

More information on the CAA’s decision and these appeals is available on the CAA’s website.

Contact

Any queries or submissions relating to this matter should be sent to appeals@cma.gov.uk.

Published 20 April 2023
Last updated 8 February 2024 + show all updates

  1. Final determination and order on costs published

  2. Final Determinations, Appendix, Glossary and Order published

  3. Final Determinations published

  4. Provisional determinations issued to parties

  5. Administrative timetable updated.

  6. Permissions to Intervene and CAA response published.

  7. Notice of extension to statutory deadline and to deadlines for CAA Responses

  8. Leave for late submission and decisions on permission to appeal published.

  9. Parties notices of appeal published and timetable for considering applications to appeal updated.

  10. First published.

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