Transport secretary Ruth Kelly is to review the economic regulation of UK airports.
The move was announced within hours of the Competition Commission’s critical interim report into BAA’s ownership of UK airports.
It will be the first time in 20 years that the way airports are regulated has been overhauled.
Kelly said: “Much has changed since then, and there is an urgent need to consider how the framework needs to be updated to reflect today’s realities.”
She wants to look at how to best provide incentives to improve the passenger experience, encourage “appropriate and timely investment†in additional airport capacity and address the wider environmental impact of aviation and airport development.
She said the review would complement the Competition watchdog’s inquiry into BAA and a strategic review of the Civil Aviation Authority.
By:Phil Davies
