The Competition and Markets Authority (CMA) has recommended regulatory reforms to break Heathrow Airport's dominance, paving the way for rival hubs to expand. The move comes as Gatwick Airport, London's second-largest airport, proposes a new runway to increase capacity.
In a report published today, the CMA argues that Heathrow's monopoly inflates airline costs and limits competition. 'The current market structure benefits Heathrow shareholders at the expense of passengers and the broader economy,' said CMA Chair Sarah Cardell. The watchdog recommends stricter price controls and measures to incentivise other airports to grow.
Gatwick CEO Stewart Wingate welcomed the report, stating: 'We are ready to invest billions in new infrastructure to relieve congestion and offer passengers choice. The CMA's recommendations are a step toward a more competitive aviation market.'
The proposals come amid growing pressure on the UK government to address airport capacity in the Southeast. Heathrow, operating at 99% capacity, often delays flights due to congestion. Critics argue that expansion restrictions have hampered connectivity and economic growth.
However, the report faces criticism from environmental groups. 'Expanding airports contradicts climate commitments,' said Julie Thomas of Green Alliance. 'The CMA should consider emissions reduction targets, not just market competition.'
The government has yet to respond, but a source familiar with the matter indicated that the Department for Transport is reviewing the recommendations. 'The priority is sustainable growth that aligns with net-zero goals,' the source added.
Heathrow has pushed back, arguing that capacity issues are best addressed by expanding existing infrastructure. 'Heathrow expansion is the most efficient solution,' said a spokesperson. 'We deliver economic benefits and jobs across the UK.'
The CMA's final report is expected later this year, with implications for aviation policy and infrastructure investment in the coming decade.
