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Regulatory Reviews for London Heathrow and Gatwick airports

Civil Aviation Authority, UK

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Our role

Steer Davies Gleave was appointed to undertake three assignments to support the Civil Aviation Authority in its regulatory reviews of London Heathrow and Gatwick airports. They included a review of the operating costs, the maintenance and renewals programme and the commercial revenues of both airports.

How we did it

Operating costs  –  reviewed the operating costs of each airport covering rents, rates, utilities, ANS and other costs, and used benchmarking with other airports and industry comparators to assess the efficiency of operations.

Maintenance and renewals – reviewed the maintenance and renewals programme, including the approach to asset management, using asset and maintenance benchmarks and industry practice to assess the operations.

Commercial revenues – reviewed the commercial revenues of both airports: retail, car parking and property.  Reviewing plans, impacts of legislative changes (tobacco) and plans for expansion.  Industry best practice was used to assess the operations.

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