CAA sets out priorities for third runway

The UK Civil Aviation Authority (CAA) has set out its priorities for developing the regulatory framework for the Heathrow third runway project.

When the Government confirmed Heathrow as its preferred option for increasing airport capacity it said that the CAA will be responsible for setting the economic regulation framework for the financing and delivery of the third runway project.

“We have already made it clear to Heathrow that cost efficiency and value for money are crucial to the delivery of the runway,” the CAA said in a statement. “We have set out our priorities for developing the regulatory framework for the project and as always, the interests of consumers will be at the heart of our decision-making throughout.” The priorities include ensuring:


  • Heathrow engages with its airlines effectively on the scope, design and costs of the runway project, to ensure it meets the needs of consumers.
  • Heathrow develops robust cost estimates and our regulatory arrangements incentivise Heathrow to deliver the project in a timely and efficient way.
  • Heathrow develops proposals for efficient financing. In addition, our regulatory framework is consistent with the efficient financing, as well as affordability and financiability of the project.
  • Heathrow develops coordinated proposals for existing operations alongside its proposals for the new runway, so its overall business plan is affordable and financeable.


The priorities are subject to consultation and the CAA welcomes views from industry and other stakeholders on its proposed approach. The proposed priorities and a timetable for the CAA’s key decisions relating to economic regulation at Heathrow are available from the CAA website

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