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Civil Aviation Act 2012

Civil Aviation Act 2012

2012 CHAPTER 19

Commentary

Part 1 – Airports

Chapter 1 – Regulation of Operators of Dominant Airports
Dominant airports
Section 12: Advance determinations

66.To give prospective operators greater certainty about whether they would require a licence to levy charges, this section empowers the CAA to make market power determinations and operator determinations in advance of a particular event taking place. For example, suppose a third party was considering whether to lease a passenger terminal building from the current operator. This section empowers the CAA to consider the terms of the lease and determine which party would be the operator of the terminal building if the lease were entered into. If the CAA determined that the third party would be the operator of the terminal building, this section also empowers the CAA to determine whether the third party satisfies the market power test and therefore requires a licence if it were to enter into the lease.

67.The advance determination(s) would not take effect until the circumstances described in the determination(s) arose and until then, any previous market power determination would continue to have effect. The CAA is empowered to delay publication of an advance determination if the circumstances have not yet arisen and doing so would involve disclosing commercially sensitive information.

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Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
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  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.

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