London—Leading global law firm Dentons advised the UK’s aviation regulator, the Civil Aviation Authority (CAA), in responding to four appeals of its price control determination for the current five-year regulatory period for Heathrow airport (Heathrow). The CAA determination significantly reduced the price control cap for Heathrow, reducing the average charge Heathrow can charge airlines per passenger.
The appeals were brought to the Competition Markets Authority (CMA) by Heathrow, arguing the price control was set too low, and British Airways, Delta Air Lines, and Virgin Atlantic, all contending the price control was set too high.
On 17th October, the CAA’s determination was overwhelmingly upheld by the CMA, with just three minor technical matters remitted to the CAA for further consideration.
These were the first price control appeals brought under the current regulatory framework established by the Civil Aviation Act 2012.
A cross-disciplinary Dentons team of competition, regulatory and disputes lawyers supported the CAA, led by Competition Partner and aviation sector specialist Christopher Graf. Other lawyers advising the CAA included Counsel Talya Morris, Associate Viktoria Tsvetanova, Senior Associate Tom Hanson, Partner Dan Bodle, and Counsel Carolyn Burns.
The CAA team was led by James Wynn-Evans (Special Legal and Regulatory Counsel), Jacqueline Greenwood (Legal Adviser), Andrew Walker (Chief Economist) and Robert Toal (H7 Programme Director). Counsel to the CAA were George Peretz KC (Monckton Chambers), Ravi Mehta and Tom Lowenthal (both Blackstone Chambers).
Speaking at the conclusion of the appeals, Christopher Graf said, “We are very pleased to have advised the CAA on this successful outcome, on what is essentially an endorsement of their original price control decision. The issues raised by the appeals have been complex and wide-ranging and it has been a pleasure to support the CAA team on this significant mandate, which stands to affect the millions of passengers who use Heathrow airport.”
