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H7 Heathrow Airport Licence modification appeals

Competition Markets Authority

June 7
11:03 2023

Timetable

Date Action
17 October 2023 Statutory deadline (with extension) for final determination
5 June 2023 Permissions to Intervene granted
31 May 2023 CAA responses received (following extension granted)
22 May 2023 Deadline for applications for permission to intervene (following leave granted for late submission)
11 May 2023 Permissions to appeal granted (statutory deadline was 16 May 2023)
2 May 2023 CAA notified the CMA that it did not intend to contest the applications for permission to bring an appeal
17 and 18 April 2023 Permission to appeal sought by 4 parties

Permissions to intervene

7 June 2023: On 5 June 2023 the CMA granted permission to British Airways plc, Delta Airlines Inc and Heathrow Airport Ltd to intervene in grounds raised by other parties appeals.

On 22 May 2023, the CMA received applications for permission to intervene in the appeals from British Airways plc, Delta Airlines Inc, and Heathrow Airport Ltd.

CAA response

7 June 2023: On 31 May 2023, the CAA responded to the Notices of Appeal from British Airways plc, Delta Airlines Inc, Heathrow Airport Ltd and Virgin Atlantic Airways Ltd.

Notice of extensions

16 May 2023: The CMA decided on 16 May 2023 to extend the period for the determination of the appeals by eight weeks to 17 October 2023 and to extend the deadlines by which the CAA must submit its Responses to the appeals to 31 May 2023.

Appeal group appointed

12 May 2023: The CMA has appointed a group of 3 panel members to determine the appeal.

Kirstin Baker (Chair), Juliet Lazarus and Paul Muysert

Applications for permission to intervene - leave for late submission

11 May 2023: The CMA has granted leave for submission of applications for permission to intervene by no later than 5pm on 22 May 2023.

CMA decisions on permission

11 May 2023: The CMA has granted permission to appeal on all grounds pleaded by British Airways plc, Delta Air Lines Inc, Heathrow Airport Ltd and Virgin Atlantic Airways Ltd.

Permission is granted subject to the conditions that the following common grounds of appeal are considered together across appellants:

  • RAB Adjustment
  • Cost of Capital grounds with the following sub-grounds:
    • Alleged errors in estimating the asset beta
    • Alleged errors in estimating the cost of debt
    • Alleged errors in selecting a point estimate for the WACC
  • Passenger Forecast/Forecasting

Notices of appeal

On 17 April 2023, Heathrow Airport Ltd and on 18 April 2023, British Airways plc, Delta Air Lines Inc and Virgin Atlantic Airways Ltd applied for permission to appeal against the Civil Aviation Authoritys (CAA) H7 Final Decision of 8 March 2023. The CAAs H7 Final Decision is a decision made under section 22 of the Civil Aviation Act 2012 which sets the price control and associated regulatory framework that applies to Heathrow Airport Ltd during the H7 price control period (1 January 2022 until 31 December 2026).

More information on the CAAs decision and these appeals is available on the CAAs website.

Contact

Any queries or submissions relating to this matter should be sent toH7_Appeal@cma.gov.uk.

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