The Civil Aviation Authority (CAA) has signalled a decisive shift in regulatory policy, placing competitive pressure on London’s dominant Heathrow Airport as part of a wider growth strategy for the British aviation sector. In a consultation document released this morning, the watchdog outlined plans to facilitate the expansion of a rival airport, widely understood to be Gatwick, by easing slot allocation rules and streamlining infrastructure approvals.
The move represents the most significant intervention by the CAA since the Davies Commission recommended a third runway at Heathrow in 2015. That project, repeatedly delayed by legal challenges and political opposition, has yet to break ground. Meanwhile, Gatwick has long argued it could deliver additional capacity more quickly and at lower cost. The regulator now appears to agree, stating that “competition between airports is essential to delivering better outcomes for passengers and the economy.”
Under the proposed framework, the CAA would require Heathrow to release unused slots to new entrants and would cap certain landing charges to prevent the hub from using its market power to stifle rivals. The measures are designed to encourage low-cost carriers and long-haul operators to shift operations to Gatwick or Stansted, alleviating congestion at Heathrow without the need for new runway construction.
Industry analysts have described the policy as a “quiet revolution” in aviation regulation. Currently, Heathrow accounts for roughly 80% of London’s long-haul capacity and operates at nearly 99% capacity. Gatwick, by contrast, has lost several long-haul routes in recent years and operates at roughly 85% capacity. The CAA believes that redressing this imbalance could unlock billions of pounds in economic benefits without the environmental costs of a new runway.
The consultation, which closes in November, is expected to face fierce opposition from Heathrow’s owners, a consortium led by Ferrovial. The airport has already warned that the measures could “undermine investor confidence” and delay its own expansion plans. However, the government has signalled its backing for the CAA’s stance, with the Transport Secretary describing the current market structure as “a bottleneck to growth.”
The CAA’s proposals also include lighter regulation for regional airports, a move designed to bolster connectivity outside the southeast. This aligns with the government’s levelling-up agenda, which has frequently cited poor air links as a drag on regional economic development.
For passengers, the changes could bring lower fares and more choice, particularly on routes to Asia and the Americas. The CAA’s modelling suggests that increased competition could reduce average ticket prices by as much as 8% on transatlantic flights within five years. However, critics warn that such gains could be offset by higher airport taxes if Heathrow is forced to raise charges to compensate for lost revenue.
The aviation industry has broadly welcomed the move. Willie Walsh, director general of the International Air Transport Association, said the CAA was “finally recognising that monopoly airports need stronger oversight.” Environmental groups, meanwhile, have given a cautious endorsement, noting that maximising use of existing infrastructure could reduce the need for new construction.
The final regulatory framework is expected in early 2025 following the consultation process. If implemented as proposed, it would represent the most significant overhaul of British airport regulation since privatisation in the 1980s. For Heathrow, long accustomed to its status as the undisputed gateway to London, the message from the CAA is clear: adapt to competition, or face forced change.
