Airport price regulation removed from Manchester but continued at Stansted
Transport Secretary, Ruth Kelly, today published decisions on whether Stansted and Manchester Airports will continue to have their charges regulated by the independent regulator, the UK Civil Aviation Authority (CAA) following a consultation by the Department for Transport (DfT).
Manchester will be "de-designated" so that it will be able to set its own charges. Stansted will continue to have the maximum level of its charges set by the Civil Aviation Authority (CAA). The CAA had previously recommended to DfT that price regulation be withdrawn from both Manchester and Stansted Airports.
Frontier (London) advised Manchester Airport Group on its responses to the DfT consultation. Frontier also prepared a report for easyJet on Stansted airport which emphasised the role of capacity restrictions in creating market power at Stansted and used passenger sales data to challenge the idea that airports in the Midlands can compete effectively with Stansted for passengers in the South East. This report was extensively cited in the Transport secretary’s decision.
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