The CAA is proposing a new "noise tax" encouraging airlines to use the quietest airlines and compensate those living on flight paths.
It said the tax would penalise flights according to how much noise pollution they cause, while proceeds could be used to pay for insulation in communities near airports.
The CAA said it would be a ‘last resort’ but it could adopt a system like The Tax on Air Transport Noise introduced in France in 2005, reports the Telegraph.
The airlines are taxed depending on the number of people affected by noise from the airport, the weight of the aircraft at take-off, the plane’s noise rating and the time of day.
In its recently published Managing Aviation Noise report, the CAA proposed a host of measures aimed at reducing noise from aircraft taking off and landing at airports in the UK and compensating those living nearby.
The report said: "If other measures do not go far enough to engage the aviation industry in the effort to manage noise, policymakers could consider a further incentive applied with the introduction of a noise tax."
