Civil Aviation Bill

Session 2012 - 13
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Civil Aviation Bill

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
27

(b)
the representation period has ended,
(c)
it has considered any representations made about the matters in the
contravention notice before the end of that period (and not withdrawn),
and
(d)
it has determined that the person is contravening, or has contravened,
5
a licence condition specified in the notice in one or more of the ways
specified in the notice.
(2)
If the contravention notice specifies more than one contravention, the CAA
may impose a separate penalty under this section for each contravention.
(3)
If the contravention notice specifies more than one period of contravention, the
10
CAA may impose a separate penalty under this section for each period.
40
Penalty for contravention of order
The CAA may impose a penalty on a person if it has determined that the
person is contravening, or has contravened, a requirement of—
(a)
an enforcement order, or
15
(b)
an urgent enforcement order that has been confirmed.
41
Procedure before imposing penalty
(1)
Before imposing a penalty on a person under section 39 or 40 the CAA must—
(a)
give the person a notice about the proposed penalty,
(b)
publish the notice as soon as practicable,
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(c)
send a copy of the notice as soon as practicable to such bodies
representing airport operators or providers of air transport services as
the CAA considers appropriate, and
(d)
consider any representations made about the proposed penalty in the
period specified in the notice (and not withdrawn).
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(2)
A notice under subsection (1) must—
(a)
state that the CAA proposes to impose a penalty,
(b)
state the proposed amount of the penalty,
(c)
specify the relevant licence condition or requirement, and
(d)
specify the act or omission that the CAA has determined constitutes a
30
contravention of the condition or requirement.
(3)
In the case of a penalty calculated entirely or partly by reference to a daily
amount (see section 43(2)), a notice under subsection (1) must specify—
(a)
the day on which daily amounts would begin to accumulate, and
(b)
the day on which, or the circumstances in which, they would cease to
35
accumulate.
(4)
The period specified in a notice under subsection (1) for making
representations must be a period of not less than 21 days beginning with the
day on which the notice is given to the person.
(5)
Before varying the proposed amount of the penalty, the CAA must—
40
(a)
give the person on whom the penalty is to be imposed a notice about
the proposed variation,
(b)
publish the notice as soon as practicable,

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
28

(c)
send a copy of the notice as soon as practicable to such bodies
representing airport operators or providers of air transport services as
the CAA considers appropriate, and
(d)
consider any representations made about the proposed variation in the
period specified in the notice (and not withdrawn).
5
(6)
In the case of a penalty calculated entirely or partly by reference to a daily
amount (see section 43(2)), the reference in subsection (5) to varying the
proposed amount of the penalty includes varying—
(a)
the day on which daily amounts would begin to accumulate, and
(b)
the day on which, or circumstances in which, they would cease to
10
accumulate.
(7)
The notice under subsection (5) must—
(a)
specify the proposed variation, and
(b)
give the CAA’s reasons for the proposed variation.
(8)
The period specified in the notice under subsection (5) for making
15
representations must be a period of not less than 21 days beginning with the
day on which the notice is given to the person.
(9)
The CAA may withdraw a notice under subsection (1) or (5) at any time by
giving notice to the person on whom it proposed to impose the penalty.
(10)
As soon as practicable after giving a notice under subsection (9), the CAA
20
must—
(a)
publish the notice, and
(b)
send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.
42
Procedure after imposing penalty
25
(1)
As soon as practicable after imposing a penalty under section 39 or 40 the CAA
must—
(a)
give a notice to the person on whom the penalty is imposed,
(b)
publish the notice, and
(c)
send a copy of the notice to such bodies representing airport operators
30
or providers of air transport services as the CAA considers appropriate.
(2)
The notice must—
(a)
state that the CAA has imposed the penalty,
(b)
state the amount of the penalty,
(c)
specify the relevant licence condition or requirement,
35
(d)
specify the act or omission that the CAA has determined constitutes a
contravention of the condition or requirement, and
(e)
specify a reasonable period within which the penalty must be paid or
reasonable periods within which different portions of the penalty must
be paid.
40
(3)
In the case of a penalty calculated entirely or partly by reference to a daily
amount (see section 43(2)), the notice must specify—
(a)
the day on which daily amounts begin to accumulate, and
(b)
the day on which, or the circumstances in which, they cease to
accumulate.
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Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
29

(4)
As soon as practicable after daily amounts cease to accumulate, the CAA
must—
(a)
give a notice to the person on whom the penalty was imposed
confirming the day on which they ceased to accumulate,
(b)
publish the notice, and
5
(c)
send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.
43
Amount of penalty
(1)
The amount of a penalty imposed on a person under section 39 or 40 must be
such amount as the CAA determines to be—
10
(a)
appropriate, and
(b)
proportionate to the contravention for which it is imposed.
(2)
The penalty may consist of either or both of the following—
(a)
a fixed amount (see section 44);
(b)
a daily amount (see section 45).
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(3)
In determining the amount of a penalty, the CAA must have regard, in
particular, to—
(a)
any representations made to it in a period specified in a notice
proposing the penalty given under section 41(1) or (5) (and not
withdrawn),
20
(b)
any steps taken by the person on whom the penalty is to be imposed
towards complying with the licence condition or requirement specified
in the notice under section 41(1), and
(c)
any steps taken by that person towards remedying the consequences of
the contravention of the condition or requirement.
25
44
Amount of penalty: fixed amount
(1)
A penalty imposed on a person (“P”) under section 39 or 40 for a contravention
may not consist of or include a fixed amount exceeding 10% of P’s qualifying
turnover for the qualifying period.
(2)
P’s qualifying turnover is—
30
(a)
P’s turnover from activities carried on at the airport at which, or in
connection with which, the contravention occurred or is occurring (“the
qualifying airport”), and
(b)
the turnover of persons connected to P from such activities.
(3)
The qualifying period is the last regulatory year ending on or before the day on
35
which the notice proposing the penalty is given under section 41(1) (“the notice
day”), except in the cases described in subsection (4).
(4)
Those cases are—
(a)
where P was not the operator of an area at the qualifying airport
throughout the last regulatory year that ends on or before the notice
40
day;
(b)
where there is no regulatory year or the last regulatory year ended
more than 12 months before the notice day;

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
30

(c)
where P has not provided the CAA with accounts prepared in
accordance with the licence for the last regulatory year that ends on or
before the notice day.
(5)
In those cases—
(a)
if P was the operator of an area at the qualifying airport on the notice
5
day, the qualifying period is the year ending with the notice day (or, if
shorter, the period ending with the notice day during which P was the
operator of such an area), and
(b)
if P was not the operator of such an area on the notice day, the
qualifying period is the year ending with the last day before the notice
10
day on which P was the operator of such an area (or, if shorter, the
period ending with that day during which P was the operator of such
an area).
(6)
P’s qualifying turnover for a qualifying period is to be taken to be the
qualifying turnover for that period as reported in accounts which P is required
15
to prepare by a licence condition, unless regulations under subsection (7)
provide otherwise.
(7)
The Secretary of State may by regulations—
(a)
amend or otherwise modify the definition of qualifying turnover, and
(b)
make provision about how a person’s qualifying turnover for a
20
qualifying period is to be calculated.
(8)
The regulations may, in particular—
(a)
make provision about cases in which turnover is or is not to be treated
as qualifying turnover for a qualifying period,
(b)
provide that a person’s qualifying turnover for a qualifying period is to
25
be taken to be the qualifying turnover reported in accounts specified or
described in the regulations, and
(c)
provide that a person’s qualifying turnover is to be calculated entirely
or partly using accounting rules specified or described in the
regulations.
30
(9)
In this section “regulatory year” means a year for which P was required to
prepare accounts by a licence condition in respect of an area at the qualifying
airport.
45
Amount of penalty: daily amounts
(1)
In relation to a penalty under section 39 or 40, a daily amount is an amount
35
payable where the contravention in respect of which the penalty is imposed
continues after it is imposed.
(2)
A penalty under section 39 may not consist of or include a daily amount unless
that contravention has been continuous since the end of the representation
period for the contravention notice in which the contravention was specified.
40
(3)
A daily amount must not exceed 0.1% of the person’s qualifying turnover for
the qualifying period.
(4)
A daily amount is payable in respect of each day in a period specified by the
CAA in the notice under section 42 stating that it has imposed the penalty.
(5)
A specified period during which daily amounts accumulate must be such
45
period as the CAA considers appropriate, subject to subsections (6) and (7).

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
31

(6)
The period must begin after the day on which the CAA gives the notice under
section 42.
(7)
The period must end before—
(a)
the day on which the contravention specified in the notice under
section 42 ceases, or
5
(b)
if more than one contravention is specified in that notice, the day on
which the last of those contraventions ceases.
(8)
In this section “qualifying turnover” and “qualifying period” have the same
meaning as in section 44.
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Use of powers under Competition Act 1998
10
(1)
Before exercising a power listed in subsection (3), the CAA must consider
whether it would be more appropriate to proceed under the Competition Act
1998.
(2)
The CAA must not exercise such a power to the extent that it considers that it
would be more appropriate to proceed under the Competition Act 1998.
15
(3)
Those powers are—
(a)
the power to give a contravention notice under section 31;
(b)
the power to give an enforcement order under section 33;
(c)
the powers to give and confirm an urgent enforcement order under
sections 35 and 36;
20
(d)
the powers to impose penalties under sections 39 and 40.
47
Appeals against orders and penalties
Schedule 3 (appeals against orders and penalties) has effect.
Revocation of licence
48
Revocation of licence
25
(1)
A licence may be revoked by the CAA by giving a notice to the holder of the
licence.
(2)
The CAA may give a notice revoking a licence only in circumstances specified
in the licence in accordance with section 17.
(3)
Before revoking a licence, the CAA must—
30
(a)
notify the holder of the licence that it intends to revoke the licence,
giving its reasons, and
(b)
give the holder of the licence an opportunity to make representations.
(4)
The CAA must not give a notice revoking a licence before the end of the period
of 30 days beginning with the day on which the CAA notifies the holder of the
35
licence in accordance with subsection (3), unless the holder of the licence agrees
otherwise.
(5)
A notice revoking a licence takes effect at the end of the period specified in the
notice (subject to paragraph 1(4) of Schedule 4).

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
32

(6)
The period specified in the notice must be a period of not less than 30 days
beginning with the day on which the notice is given.
(7)
The CAA may extend the period specified in the notice at any time before the
end of that period by giving a notice to the holder of the licence.
(8)
The CAA may only extend the period once and only by up to 30 days.
5
(9)
The CAA may withdraw a notice revoking a licence at any time before it takes
effect by giving a further notice to the holder of the licence.
(10)
A notice under subsection (1) or (9) must give the CAA’s reasons for revoking
the licence or withdrawing a notice revoking the licence (as appropriate).
(11)
As soon as practicable after giving a notice under subsection (1), (7) or (9), the
10
CAA must—
(a)
publish the notice, and
(b)
send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.
49
Appeals against revocation of licence
15
Schedule 4 (appeals against revocation of licence) has effect.
Obtaining information
50
Power to obtain information
(1)
The CAA may by notice require a person to provide—
(a)
information, or
20
(b)
a document that is in the person’s custody or under the person’s
control.
(2)
The CAA may give a notice under this section only in respect of information or
documents that it reasonably requires for the purpose of carrying out its
functions under this Chapter.
25
(3)
The notice may require the information or document to be provided—
(a)
at a time and place specified in the notice, and
(b)
in a form and manner specified in the notice.
(4)
The notice may not require a person to provide information or documents that
the person could not be compelled to provide in evidence in civil proceedings
30
before the appropriate court.
(5)
“The appropriate court” means—
(a)
in relation to England and Wales and Northern Ireland, the High Court,
and
(b)
in relation to Scotland, the Court of Session.
35
51
Enforcement of information notice
(1)
If a person fails to comply with a notice under section 50 without reasonable
excuse, the CAA may do either or both of the following—
(a)
impose a penalty on the person;

Civil Aviation Bill
Part 1 — Airports
Chapter 1 — Regulation of operators of dominant airports
33

(b)
enforce the duty to comply with the notice in civil proceedings for an
injunction or, in Scotland, for specific performance of a statutory duty
under section 45 of the Court of Session Act 1988.
(2)
The amount of the penalty must be such amount as the CAA determines to
be—
5
(a)
appropriate, and
(b)
proportionate to the failure in respect of which it is imposed.
(3)
A penalty may consist of either or both of the following—
(a)
a fixed amount;
(b)
an amount payable in respect of each day in a period specified by the
10
CAA (a “daily amount”).
(4)
A fixed amount must not exceed £2,000,000.
(5)
A daily amount must not exceed £100,000.
(6)
A specified period during which daily amounts accumulate must be such
period as the CAA considers appropriate, subject to subsections (7) and (8).
15
(7)
The period must begin after the day on which the CAA gives the notice under
section 54(1) stating that it has imposed the penalty.
(8)
The period must end before the day on which the person provides the
information or documents specified in the notice under section 50.
(9)
The Secretary of State may by regulations replace the amount for the time being
20
specified in subsection (4) or (5).
52
Penalty for providing false information, destroying documents etc
(1)
The CAA may impose a penalty on a person if, in relevant circumstances, the
person provides information to the CAA that is false or misleading in a
material respect and—
25
(a)
the person knows that the information is false or misleading, or
(b)
the person is reckless as to whether the information is false or
misleading.
(2)
A person provides information in relevant circumstances if the person does
so—
30
(a)
in accordance with a licence condition,
(b)
in response to a notice under section 50, or
(c)
knowing that the CAA is likely to use the information for the purpose
of carrying out its functions under this Chapter.
(3)
The CAA may impose a penalty on a person if the person intentionally alters,
35
suppresses or destroys a document that the person is required to produce by a
notice under section 50.
(4)
The amount of a penalty imposed on a person under this section must be such
amount as the CAA determines to be—
(a)
appropriate, and
40
(b)
proportionate to the action in respect of which it is imposed.