DfT says Manchester Airport can set own fees but Stansted will remain regulated
15.01.08
The Department for Transport (DfT) announced today that Manchester Airport will be allowed to set its own charges, enabling the airport to grow and develop without the costs of excessive regulation falling on passengers. However, it also said that Stansted Airport will continue to have the maximum level of its fees charged to airlines set by the Civil Aviation Authority (CAA), as the government sees this as the best way to protect passengers using this airport.
Manchester no longer meets the criteria for so-called 'designated' airports, the Department for Transport said today in a Regulatory News Service statement. Stansted and Manchester have had designated status since 1986, with price caps set every five years by the Civil Aviation Administration.
Transport Secretary, Ruth Kelly said in a statement: 'In making my decision on Manchester I have taken into consideration the fact that other local airports, such as Liverpool airport, offer real choice for passengers,' adding that there was spare capacity at Manchester and at competing airports.
On the decision to retain price caps at Stansted, Ms. Kelly said:: 'In making my decision on Stansted, I have taken into consideration the fact that the airports in the Southeast are now operating at almost full capacity. 'This is bad for passengers in terms of delays, congestion and lack of choice.'
She said the government continues to support a second runway at Stansted and additional capacity at Heathrow, adding that the CAA has an important role in protecting passengers at Stansted until this new capacity is delivered.
The CAA had recommended in July that both airports be allowed to set their own fees, saying there was enough competition in their respective catchment areas to keep the charges competitive. However, Stansted's biggest airlines including Ryanair and easyJet objected strongly to the recommendation.
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