The Civil Aviation Authority (CAA) has today announced the level of its price controls for Gatwick and Heathrow airports for the next five years from 1 April 2008.

The following maximum charges apply:

Heathrow £12.80 per passenger in 2008-09 – an increase of £2.44 (23.5%) with increases amounting to the retail price index (RPI) inflation + 7.5% per year for the following four years.

Gatwick’s maximum is set at £6.79 per passenger for 2008-09 – an increase of £1.18, or (21%). Increases for the following four years must be no more that RPI inflation + 2% per year.

In its statement the CAA recognised the ‘increases in airport charges are significant’ but states that ‘these higher charges are essentially paying for the modernisation of Heathrow and Gatwick’ which ‘entails paying for the full capital and operating costs of Terminal 5’.