In 2022, MCC provided comprehensive support to the Civil Aviation Authority (CAA) in developing and refining their finance policy decisions for the H7 Heathrow Airport Price Controls. This included an in-depth analysis of regulatory precedents, financial policies, and market dynamics to ensure the CAA’s decisions were grounded in robust evidence and best practices.

Key aspects of our work included:

• Policy Development Support: We assisted the CAA in crafting finance policy frameworks for the H7 Price Controls, ensuring alignment with regulatory expectations and addressing key stakeholder concerns.
• Regulatory Precedent Analysis: Our team conducted a detailed review of prior appeals, including the CMA’s RIIO-2 network appeals from 2021 and the water sector PR19 redeterminations in 2020. This helped identify relevant precedents and anticipate areas of potential scrutiny in future appeals.
• Expert Witness Contributions: We leveraged the expertise of our director, Mr. PJ McCloskey, whose prior witness statements were extensively cited in the CMA’s Energy Licence Appeal Final Decision. This allowed us to provide authoritative insights and prepare the CAA for potential appeals.
• Appeals Preparedness: In anticipation of challenges to the H7 decisions, we supported the CAA by identifying issues likely to be appealed and developing counterarguments grounded in financial and regulatory analysis.

Our preparatory work proved instrumental during the subsequent 2023 CMA appeals by Heathrow, British Airways plc, Delta Air Lines Inc., and Virgin Atlantic Airways Ltd., positioning the CAA to navigate these challenges effectively.

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