Gatwick expansion rationale not impacted by Heathrow third runway, regulator says
The UK’s aviation regulator has put its weight behind Gatwick Airport’s proposals for a second runway as it accepted a range of financial commitments from the hub over the next four years.
The Civil Aviation Authority (CAA) on Tuesday said the expansion plans would still provide “benefits to consumers” even if Heathrow also gets a third runway.
It came as Gatwick committed to a price cap on how much it can charge airline customers and changes to the current service quality targets for consumers. Under the fresh proposals, the maximum increase in the cap for the first two years has been set against the Consumer Price Index (CPI) minus one per cent.
The CAA said its support for Gatwick’s new targets was “conditional” on it continuing to make progress in its bid for a £2.2bn capacity expansion.
A final decision on the project is expected by Transport Secretary Heidi Alexander before Thursday.
The West Sussex airport is looking to bring its emergency runway into routine use, which it says will allow for up to 76m passengers per year and enable it to tap into a range of long-haul routes.
The Labour government has already backed a slew of airport proposals to significantly expand capacity. Chancellor Rachel Reeves, in a speech on growth last month, supported Heathrow’s long-delayed and highly controversial third runway, alongside Gatwick and Luton’s more modest proposals.
Plans for London City Airport to significantly increase its annual passenger cap from 6.5m to 9m were also given the green light in August after the government overturned a local council ruling.
Critics of a third runway at Heathrow, including London Mayor Sir Sadiq Khan, argue Gatwick’s plans destroy the rationale for a third runway at the UK’s biggest airport.
The CAA on Tuesday said it had considered the “implications of the recent government announcement in relation to the development of a third runway at Heathrow.”
“Gatwick’s airline and passenger base is significantly different from that using Heathrow and we remain of the view that there are likely to be benefits to consumers in expanding capacity in Gatwick, including in relation to meeting the demands of passengers in the choice of destinations, enhanced competitive pressure on airlines and the greater resilience of airport infrastructure.”