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(a) a request is made before the commencement day for an order
designating an airport for the purposes of section 40 of the 1986 Act
or Article 31 of the 1994 Order or revoking the designation of an
airport for those purposes, and

(b) 5the Secretary of State or the Department of the Environment in
Northern Ireland does not make the order, or decide not to make the
order, before the commencement day,

the request is to be treated on and after that day as a request to the CAA for
a market power determination in respect of the airport area consisting of the
10whole of the airport.

(3) In this paragraph, references to an airport are to an airport as defined in the
1986 Act or the 1994 Order, except in the expression “airport area”.

Designation and de-designation during interim period

5 (1) During the interim period, an order may not be made designating an airport
15for the purposes of section 40 of the 1986 Act or Article 31 of the 1994 Order.

(2) Section 40A(1) of the 1986 Act and Article 31A(1) of the 1994 Order (duty to
designate airports in specified circumstances) do not require an order
designating an airport for those purposes to be made during the interim
period.

(3) 20During the interim period, an order designating an airport for the purposes
of section 40 of the 1986 Act or Article 31 of the 1994 Order—

(a) must be revoked if the CAA makes, and publishes a notice of, a
determination that the market power test is not met in relation to the
designated airport (subject to sub-paragraph (4)), and

(b) 25may not otherwise be revoked.

(4) During the interim period, such an order must not be revoked—

(a) during the period in which a person may appeal to the Competition
Appeal Tribunal against the determination,

(b) at a time when the effect of the determination is suspended or the
30Secretary of State or the Department of the Environment in Northern
Ireland considers that it may be suspended, or

(c) if all or part of the determination has been set aside or quashed.

(5) Where—

(a) a request is made during the interim period for an order revoking the
35designation of an airport for the purposes of section 40 of the 1986
Act or Article 31 of the 1994 Order, and

(b) the Secretary of State or the Department of the Environment in
Northern Ireland does not make the order, or decide not to make the
order, before the end of that period,

40the request is to be treated after the end of the interim period as a request to
the CAA for a market power determination in respect of the airport area
consisting of the whole of the airport.

(6) In this paragraph, references to an airport are to an airport as defined in the
1986 Act or the 1994 Order, except in the expressions “airport area” and
45“dominant airport”.

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Modification of preceding paragraphs

6 (1) This paragraph applies where an airport as defined in section 66 of this Act
(a “2012 Act airport”) consists of an airport as defined in the 1986 Act or the
1994 Order (a “predecessor airport”) and other land, buildings and
5structures.

(2) In this paragraph “the main operator’s airport area” means the whole of the
area at the 2012 Act airport in respect of which the operator (as defined in
this Act) on the commencement day is the person who was the operator (as
defined in the 1986 Act or the 1994 Order) of the predecessor airport
10immediately before the commencement day.

(3) In paragraph 2

(a) the reference in sub-paragraph (1) to an airport is to the predecessor
airport, and

(b) the reference in sub-paragraph (2) to the airport area consisting of the
15whole of the airport is to the main operator’s airport area.

(4) In paragraph 3

(a) the reference in sub-paragraph (1) to an airport is to the predecessor
airport,

(b) the reference in sub-paragraph (2) to services provided at the airport
20is to services provided in the main operator’s airport area, and

(c) the reference in sub-paragraph (2)(b) to the airport is to the
predecessor airport.

(5) An airport area that is not located at the predecessor airport is to be treated
as located at that airport for the purposes of paragraph 4(1) if it forms part
25of the main operator’s airport area.

(6) Where a request falling within paragraph 4(2)(a) and (b) is made in relation
to the predecessor airport, the request is to be treated on and after the
commencement day as a request for a market power determination in
respect of the main operator’s airport area.

(7) 30In paragraph 5(3), the reference to a determination that the market power
test is not met in relation to the designated airport includes a determination
that it is not met in relation to an airport area that includes the whole of the
predecessor airport.

(8) Where a request falling within paragraph 5(5)(a) and (b) is made in relation
35to the predecessor airport, the request is to be treated after the end of the
interim period as a request for a market power determination in respect of
the main operator’s airport area.

Power to amend this Schedule

7 The power under section 108 may not be used—

(a) 40to provide that the interim period ends before 31 March 2014, or

(b) to make provision having an effect equivalent to any effect that
would result from such a change.

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Part 2 Status of airport operators as statutory undertakers etc

Great Britain

8 In paragraphs 9 to 12 “the commencement day” means the day on which
5Part 1 of Schedule 8 comes into force.

9 (1) This paragraph applies where, in relation to an airport, a permission to levy
airport charges is in force under Part 4 of the Airports Act 1986 (economic
regulation of airports) immediately before the commencement day (but see
paragraph 11).

(2) 10The permission has effect on and after the commencement day as if it were
a certificate granted by the CAA under section 57A of that Act (statutory
undertakers) (inserted by Part 1 of Schedule 8).

10 (1) This paragraph applies where, immediately before the commencement day,
there subsists a pending application made by the operator of an airport in
15accordance with section 38 of the Airports Act 1986 for a permission to levy
airport charges (but see paragraph 11).

(2) The application has effect on and after the commencement day as if it were
an application for a certificate under section 57A of that Act (statutory
undertakers) (inserted by Part 1 of Schedule 8).

(3) 20Part 5 of the Airports Act 1986 (statutory undertakers) applies to the airport
while the application is pending.

11 Paragraphs 9 and 10 do not apply where the airport is an airport mentioned
in section 57A(5) of the Airports Act 1986 (airports owned by councils or
transport authorities etc) (inserted by Part 1 of Schedule 8).

12 25Nothing in this Act affects any rights or liabilities accruing under or by
virtue of Part 5 of the Airports Act 1986 (statutory undertakers) before the
commencement day.

13 In paragraphs 9 to 11, “airport” has the same meaning as in the Airports Act
1986.

30Northern Ireland

14 In paragraphs 15 to 17 “the commencement day” means the day on which
Part 2 of Schedule 8 comes into force.

15 (1) This paragraph applies where, in relation to an airport, a permission to levy
airport charges is in force under Part 4 of the Airports (Northern Ireland)
35Order 1994 (S.I. 1994/426 (N.I. 1)S.I. 1994/426 (N.I. 1)) (economic regulation of airports)
immediately before the commencement day.

(2) The permission has effect on and after the commencement day as if it were
a certificate granted by the CAA under Article 2A of that Order (statutory
undertakers) (inserted by Part 2 of Schedule 8).

16 (1) 40This paragraph applies where, immediately before the commencement day,
there subsists a pending application made by the operator of an airport in
accordance with Article 29 of the Airports (Northern Ireland) Order 1994
(S.I. 1994/426 (N.I. 1)S.I. 1994/426 (N.I. 1)) for a permission to levy airport charges.

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(2) The application has effect on and after the commencement day as if it were
an application for a certificate under Article 2A of that Order (regulated
airports) (inserted by Part 2 of Schedule 8).

(3) The airport is to be treated as a regulated airport for the purposes of the
5Airports (Northern Ireland) Order 1994 (S.I. 1994/426 (N.I. 1)S.I. 1994/426 (N.I. 1)) while the
application is pending.

17 Nothing in this Act affects any rights or liabilities accruing under or by
virtue of Part 2 of the Airports (Northern Ireland) Order 1994 (S.I. 1994/426S.I. 1994/426
(N.I. 1)) (powers in relation to land exercisable in connection with airports)
10or Article 25 or 26 of that Order before the commencement day.

18 In paragraphs 15 to 17, “airport” has the same meaning as in the Airports
(Northern Ireland) Order 1994 (S.I. 1994/426 (N.I. 1)S.I. 1994/426 (N.I. 1)).

Section 78

SCHEDULE 11 Aviation security directions etc: minor and consequential amendments

15Civil Aviation Act 1982 (c. 16)Civil Aviation Act 1982 (c. 16)

1 Part 1 of the Civil Aviation Act 1982 (administration) is amended as follows.

2 In section 11 (charges by CAA) at the end insert—

(8) References in this section to functions of the CAA include functions
conferred by or under Part 2 of the Aviation Security Act 1982 on
20authorised persons (as defined in that Part) to the extent that the
functions are carried out by persons authorised by the CAA.

3 In section 20 (supplementary provisions with respect to functions of the
CAA) at the end insert—

(5) References in this section to functions of the CAA include functions
25conferred by or under Part 2 of the Aviation Security Act 1982 on
authorised persons (as defined in that Part) to the extent that the
functions are carried out by persons authorised by the CAA.

Aviation Security Act 1982 (c. 36)Aviation Security Act 1982 (c. 36)

4 Part 2 of the Aviation Security Act 1982 (protection of civil aviation against
30acts of violence and other unlawful interference) is amended as follows.

5 For the heading before section 11 substitute “Information”.

6 (1) Section 11 (power to require information) is amended as follows.

(2) In subsection (1)—

(a) for “The Secretary of State” substitute “A relevant authority”,

(b) 35for “the Secretary of State”, in each place, substitute “the authority”,
and

(c) for “his functions” substitute “functions conferred by or”.

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(3) After that subsection insert—

(1A) Each of the following is a relevant authority for the purposes of this
section—

(a) the Secretary of State, and

(b) 5the CAA.

(4) In subsections (2) to (4) and (6) for “Secretary of State”, in each place,
substitute “relevant authority”.

(5) In subsection (4) for “him” substitute “the authority”.

(6) In subsection (6)—

(a) 10after “person” insert “by a relevant authority”, and

(b) after “varied” insert “by the relevant authority”.

(7) Accordingly, in the heading of that section omit “for Secretary of State”.

7 Before section 11A insert—

Designation of security restricted areas.

8 (1) 15Section 11A (designation of security restricted area) is amended as follows.

(2) After subsection (4) insert—

(4A) Before approving an application without modifications the Secretary
of State shall consult the CAA.

(3) In subsection (5), before paragraph (a) insert—

(za) 20the CAA,.

(4) In subsection (8), before paragraph (a) insert—

(za) the CAA,.

9 Before section 12 insert—

Directions.

10 25In section 12(3) (power to impose restrictions in relation to aircraft)—

(a) for “the Civil Aviation Authority” substitute “the CAA”, and

(b) for “that Authority” substitute “the CAA”.

11 In section 15(2) (matters which may be included in directions under section
12) for “the Civil Aviation Authority” substitute “the CAA”.

12 (1) 30After section 17 insert—

17A Copies of directions etc for CAA

(1) The Secretary of State must give the CAA a copy of—

(a) each direction under section 12, 13, 13A or 14, and

(b) each direction varying or revoking such a direction.

(2) 35The Secretary of State must inform the CAA of each notification
given under section 17.

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(2) The amendment made by sub-paragraph (1) applies only in relation to
directions and notifications given on or after the day on which this
paragraph comes into force.

13 (1) Section 18A (enforcement notices) is amended as follows.

(2) 5Omit subsection (3).

(3) After that subsection insert—

(4) Where a person authorised in writing by the Secretary of State for the
purposes of this Part of this Act serves an enforcement notice, the
Secretary of State must give the CAA a copy of the notice.

(5) 10Where a person authorised in writing by the CAA for the purposes
of this Part of this Act serves an enforcement notice, the CAA must
give the Secretary of State a copy of the notice.

14 (1) Section 18D (objections to enforcement notices) is amended as follows.

(2) After subsection (3) insert—

(3A) 15On receipt of an objection to an enforcement notice under subsection
(1) the Secretary of State must—

(a) give a copy of the objection to the authorised person who
served the enforcement notice and the CAA,

(b) consider the objection,

(c) 20allow the person making the objection and the authorised
person who served the enforcement notice an opportunity to
make written or oral representations to the Secretary of State
or a person appointed by the Secretary of State,

(d) give a decision notice to the person who made the objection,
25and

(e) give a copy of the decision notice to the authorised person
who served the enforcement notice and the CAA.

(3) In subsection (4)—

(a) for the words from the beginning to “on the objector” substitute “In
30this section “decision notice” means”, and

(b) in paragraph (b) for “notice under this subsection” substitute
“decision notice”.

(4) In subsection (5) for “a notice under subsection (4) above”, in both places,
substitute “a decision notice”.

15 (1) 35Section 20B (detention directions) is amended as follows.

(2) After subsection (2) insert—

(2A) Where a person authorised in writing by the Secretary of State for the
purposes of this Part of this Act gives a detention direction, the
Secretary of State must give the CAA a copy of the direction.

(2B) 40Where a person authorised in writing by the CAA for the purposes
of this Part of this Act gives a detention direction, the CAA must give
the Secretary of State a copy of the direction.

(3) In subsection (5)—

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(a) before paragraph (a) insert—

(za) give a copy of the objection to the authorised person
who gave the direction and the CAA,,

(b) omit “and” at the end of paragraph (c),

(c) 5in paragraph (d) omit “and the authorised person who gave the
direction”, and

(d) after that paragraph insert , and

(e) give a copy of the notice to the authorised person who
gave the direction and the CAA.

16 10In section 21 (application of provisions to air navigation installations), in
subsection (7)—

(a) after “in section” insert “14A, 16A,”, and

(b) after “17,” insert “17A,”.

17 (1) Section 21G (duty to report certain occurrences) is amended as follows.

(2) 15In subsection (1) after “to him” insert “or the CAA”.

(3) In subsection (2) after “consult” insert

(a) the CAA, and

(b).

Application of Part 3 of Regulatory Enforcement and Sanctions Act 2008 (“the RESA 2008”)

18 20The offences under section 11 of the Aviation Security Act 1982 (as amended
by this Schedule) (“the ASA 1982”) in connection with providing, or failing
to provide, information to the Civil Aviation Authority are to be treated for
the purposes of Part 3 of the RESA 2008 (civil sanctions) as contained in Part
2 of the ASA 1982 immediately before the day on which the RESA 2008 was
25passed.

Section 82

SCHEDULE 12 Aviation security: further provision about transfer schemes

Transfer

1 (1) The property, rights and liabilities that may be transferred by a scheme
30under section 82 (a “transfer scheme”) include property, rights and liabilities
that would otherwise be incapable of being transferred.

(2) A transfer scheme may—

(a) create rights, or impose liabilities, in relation to property transferred
by the scheme,

(b) 35create new rights and liabilities as between the Crown and the Civil
Aviation Authority (“the CAA”), and

(c) apportion property, rights and liabilities between the Crown and the
CAA.

(3) A transfer scheme may include consequential, incidental, supplementary,
40transitional, transitory and saving provision.

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Employment

2 (1) This paragraph has effect where rights, powers, duties and liabilities relating
to an individual’s contract of employment are transferred in accordance
with a transfer scheme.

(2) 5The transfer does not break the continuity of the individual’s employment
and accordingly—

(a) the individual is not to be regarded for the purposes of Part 11 of the
Employment Rights Act 1996 (redundancy) as having been
dismissed by virtue of the transfer, and

(b) 10the individual’s period of employment in the civil service of the
Crown counts as a period of employment with the CAA for the
purposes of that Act.

3 (1) This paragraph has effect where—

(a) a transfer scheme contains provision for the transfer of rights,
15powers, duties and liabilities relating to an individual’s contract of
employment, but

(b) before the transfer takes effect, the individual informs the Secretary
of State or the CAA that the individual objects to the transfer.

(2) Those rights, powers, duties and liabilities are not transferred under the
20transfer scheme.

(3) The individual’s contract of employment is terminated immediately before
the day on which the transfer would occur.

(4) The individual is not, for any purpose, to be regarded as having been
dismissed.

(5) 25Nothing in this paragraph affects the individual’s right to terminate the
contract of employment if, apart from the change of employer, a substantial
change is made to the individual’s detriment in the individual’s working
conditions.

4 (1) If a transfer scheme contains provision for the transfer of rights, powers,
30duties and liabilities relating to an individual’s contract of employment, it
may include provision with respect to the individual’s eligibility to become
a member of a pension scheme by virtue of employment with the CAA.

(2) The transfer scheme may include provision with respect to rights of, or
rights or liabilities in respect of, the individual under—

(a) 35a pension scheme of which the individual may become a member by
virtue of employment with the CAA, or

(b) a pension scheme of which the individual is a member by virtue of
employment immediately before the transfer.

(3) In this paragraph “pension scheme” includes a scheme made under section
401 of the Superannuation Act 1972 (superannuation schemes as respects civil
servants etc).

Civil servants treated as employed under a contract of employment etc

5 (1) This Schedule applies with the following modifications in relation to
employment in the civil service of the Crown on terms which do not
45constitute a contract of employment.

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(2) Where an individual holds such employment—

(a) the individual is to be treated as employed under a contract of
employment,

(b) the terms of the employment in the civil service of the Crown are to
5be treated as the terms of that contract, and

(c) the reference in paragraph 3 to dismissal is to be treated as a
reference to termination of the employment in the civil service of the
Crown.

Certificate

6 10A certificate issued by the Secretary of State that any property, rights,
powers, duties or liabilities have been transferred to the CAA under a
transfer scheme is conclusive evidence of the transfer.

Validity

7 A transfer under a transfer scheme does not affect the validity of anything
15done by or in relation to the Crown before the transfer takes effect.

Continuity

8 (1) A transfer scheme may provide for things done by or in relation to the
Crown for the purposes of or in connection with anything transferred under
a transfer scheme to be—

(a) 20treated as done by or in relation to the CAA or its members or
employees, or

(b) continued by or in relation to the CAA or its members or employees.

(2) A transfer scheme may, in particular—

(a) make provision about the continuation of legal proceedings, and

(b) 25make provision for references to the Crown in documents to be
treated as references to the CAA.

Section 90

SCHEDULE 13 Appeals against penalties

Appeals against penalties

1 (1) 30A person may appeal to the Competition Appeal Tribunal against a penalty
imposed on the person under section 86 or 87.

(2) The appeal may be against one or more of the following—

(a) a decision to impose the penalty;

(b) a decision as to the amount of the penalty;

(c) 35in the case of a penalty calculated entirely or partly by reference to a
daily amount, a decision as to the period during which daily
amounts accumulate;

(d) a decision as to the period allowed for payment of the penalty.

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(3) Where a person appeals under this paragraph against a penalty, the CAA
may not require the person to pay the penalty until the appeal is decided or
withdrawn.

Decisions on appeal

2 (1) 5The Competition Appeal Tribunal may allow an appeal under paragraph 1
only to the extent that it is satisfied that the decision appealed against was
wrong on one or more of the following grounds—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) 10that an error was made in the exercise of a discretion.

(2) It may—

(a) confirm or set aside the notice or penalty;

(b) give the CAA such directions as it considers appropriate, including
directions about the time within which the CAA must act.

(3) 15It may not direct the CAA to do anything that the CAA would not have
power to do apart from the direction.

(4) The CAA must comply with directions under this paragraph.

(5) When deciding an appeal under paragraph 1 (including giving directions),
the Competition Appeal Tribunal must have regard to the matters in respect
20of which duties are imposed on the CAA by section 4 of the Civil Aviation
Act 1982.

Further appeals

3 (1) An appeal lies to the appropriate court on a point of law arising from a
decision of the Competition Appeal Tribunal under paragraph 2, including
25a direction.

(2) An appeal under this paragraph may be brought by a party to the
proceedings before the Competition Appeal Tribunal.

(3) An appeal may not be brought under this paragraph without the permission
of—

(a) 30the Competition Appeal Tribunal, or

(b) the appropriate court.

(4) “The appropriate court” means—

(a) in the case of an appeal from proceedings in England and Wales or
Northern Ireland, the Court of Appeal, or

(b) 35in the case of an appeal from proceedings in Scotland, the Court of
Session.

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