9 October 2026

REGULATOR ISSUES REGULATORY MODEL UPDATE

The UK Civil Aviation Authority has today outlined a range of measures to strengthen the regulatory framework of Heathrow's existing two runway and potential three runway airport.

The aim of these changes is to encourage further efficiency and competition, building on the regulator's previous July 2026 publication and with a clear focus on protecting consumers.

The Civil Aviation Authority's objective is clear: to ensure Heathrow, including a third runway development, delivers efficiently, transparently and in the interests of consumers. The regulatory framework will strengthen independent scrutiny and seek to drive efficiency through a range of measures, including applying competitive pressure. These arrangements will be further developed during the remainder 2026 and 2027.

The initial focus of this work is on the arrangements for a third runway, with some of the arrangements being developed to apply to Heathrow's existing two runway operations. The measures under development include:

· Strengthened capital governance arrangements, including a new independent capital committee to oversee expansion expenditure.

· A tailored package of incentives designed to encourage efficient delivery and protect consumers from excessive cost escalation and delays.

· Longer-term framework over regulatory returns where this is shown to reduce financing costs and benefit consumers.

· Greater oversight of procurement activity and increased use of competition for new assets where it can demonstrably improve outcomes for Heathrow's passengers.

· Continued work on a framework capable of accommodating direct competition should a third-party organisation secure planning consent to develop expansion infrastructure.

Tim Johnson, Director of Consumers and Markets at the UK Civil Aviation Authority, said:

"We have been clear about the importance of protecting consumers. As part of our work on Heathrow's potential runway expansion and the development of the existing airport, we want to develop a package of measures aimed at improving accountability, affordability, efficiency and service quality while supporting the timely delivery of Heathrow expansion."

The regulator intends to undertake further consultation and stakeholder engagement throughout 2027 ahead of final decisions on how these different measures would work, with key elements of the new capital governance framework expected to be developed by the end of 2027.

This is designed to ensure that the new arrangements are robust, protect consumers and bring further clarity to scheme promoters on the regulatory framework ahead of any applications for "Development Consent" which would grant planning permission for the expansion of Heathrow under the Planning Act 2008, and which are currently expected at the end of 2027.

The full document is available on the Civil Aviation Authority website: https://www.caa.co.uk/CAP3313

___________________________________________________________________

For further information contact:

John Cottrill
Communications Lead
T: +44 (0)333 103 6000
E: press.office@caa.co.uk

Andrew McConnell
Deputy Director, Communications and Engagement
T: +44 (0)333 103 6000

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