Regulation of airport charges at Stansted Airport

The UK Department for Transport is consulting on whether Stansted, London’s third largest airport, should continue to be “designated” under the terms of the Airports Act 1986. If Stansted is de-designated then the overall level of its airport charges will no longer be subject to a maximum limit set by the Civil Aviation Authority (CAA). This move has important implications for competition in the airport and airline sectors, the future level of airport charges and the incentives on airport operators to develop efficient levels of airport capacity. Frontier’s paper, commissioned by easyJet, presents an analysis of the two-way relationship between prices and capacity in an unregulated airport market, and uses statistical analysis of customer sales data to explore the relationship between passengers preference for air services offered at different airports and travel distance to each of the available choices.”

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