Stansted given lower price caps than expected

THE Civil Aviation Authority (CAA) has issued lower price caps than expected to Stansted Airport to encourage competition between nearby airports.

Following suggestions from the Competition Commission the CAA took into account airport revenues from charges to cargo and other non-passenger flights.

The caps are £6.34 per passenger for the first two years, which will then rise to £6.65 by 2013-14. The intent is to allow the airport to continue with expansion plans  to meet traffic demand and so the costs of building the a second runway will be excluded from the price control.

A spokesman for BAA, Stansted Airport’s operator, said: “While the CAA is supporting the cost of the second runway planning application, we are disappointed that a significant element of our spend to date has been disallowed. We will continue to press for a regulatory framework which reflects the full cost of bringing forward the second runway proposals at Stansted”