London First response to CAA announcement on price controlsNovember 20, 2007
Responding to the Civil Aviation Authority’s announcement on Price Controls today, Baroness Jo Valentine, Chief Executive of London First, said:
“To maintain competitiveness, a successful world city such as London needs a world class airport with the capacity to meet its passengers’ needs and its environmental responsibilities.
“The regulatory regime must enable the long term investment needed to restore Heathrow to world class status. The Government, having instigated a review of the regulatory regime, obviously believes it is not working properly. The passenger is not being served by the current arrangements.
“Now the regulator has admitted that its price control proposals at Heathrow will need to be looked at again in three months due to what it calls significant turbulence in the capital markets. Fixing price controls for the next five years in the midst of such uncertainty would amount to a rush to judgment. Long term investments do not need uncertainty, nor do they need short term regulation.
“A decision on the current Price Control proposals should be postponed until it is clear that they reflect the long term role of the regulator. With the right investment, incentivised by a well-designed regulatory regime, Heathrow can once again be the best airport in the world.”
Notes to editors
London First is a business membership organisation working to improve and promote London. We do this by mobilising the experience, expertise and enthusiasm of the private sector to develop practical solutions to the challenges facing London.
London First delivers its activities with the support of 300 of the capital’s major businesses in key sectors such as finance, professional services, property, ICT, creative industries, hospitality and retail. Our members represent a quarter of London’s GDP.