(2D) The chief executive is to be appointed by the non-executive members
with the approval of the Secretary of State.

(2E) Other executive members are to be appointed by the chief executive
with the approval of—

(a) 5the chair, and

(b) at least one other non-executive member.

(2F) The Secretary of State and the chief executive must exercise their
powers under this section to secure that, so far as practicable, the
number of non-executive members exceeds the number of executive
10members.”

(2) In paragraph 12 of Schedule 1 to that Act (CAA staff), at the beginning insert
“Subject to section 2,”.

(3) In paragraph 18 of that Schedule (interpretation of additional provisions
relating to constitution, etc of CAA), for the words from ““the chairman”” to
15“the CAA and” substitute “—

(a) chair”, “deputy chair”, “member”, “executive member” and “non-
executive member” mean respectively the chair, the deputy chair, a
member, an executive member and a non-executive member of the
CAA, and

(b)”. 20

96 Non-executive members of CAA

(1) Schedule 1 to the Civil Aviation Act 1982 (additional provisions relating to
constitution, etc of CAA) is amended as follows.

(2) For the heading immediately before paragraph 1 substitute—

25“Appointment and tenure of non-executive members”.

(3) In paragraphs 1 to 4 for “a member”, in each place, substitute “a non-executive
member”.

(4) In paragraph 1(b) for “each member” substitute “each non-executive member”.

(5) In paragraphs 2 to 4 for “the chairman or a deputy chairman”, in each place,
30substitute “the chair or deputy chair”.

(6) In paragraph 5 for sub-paragraph (1) substitute—

“(1) The Secretary of State may by notification in writing remove a non-
executive member from office if the Secretary of State is satisfied that
the member—

(a) 35has a financial or other interest that is likely to affect
prejudicially the performance of the member’s functions,

(b) has become bankrupt or made an arrangement with the
member’s creditors,

(c) is a person in respect of whom a debt relief order has been
40made under Part 7A of the Insolvency Act 1986,

(d) is failing, or has failed, to perform the functions of a non-
executive member, or

(e) is otherwise unable or unfit to perform those functions.”

(7) For the heading immediately before paragraph 6 substitute—

“Remuneration etc of non-executive members”.

(8) In paragraph 6—

(a) 5for “member” substitute “non-executive member”, and

(b) omit “with the consent of the Treasury”.

(9) In paragraph 7—

(a) omit “with the consent of the Treasury”,

(b) for “pensions, allowances or gratuities to or in respect of” substitute
10“allowances to”,

(c) for “members” substitute “non-executive members”, and

(d) omit sub-paragraph (2).

(10) In paragraph 8—

(a) for “member” substitute “non-executive member”, and

(b) 15omit “with the consent of the Treasury” in both places.

(11) Omit paragraph 13(2) (member’s participation in employee pension scheme).

97 Executive members of CAA

(1) Schedule 1 to the Civil Aviation Act 1982 (additional provisions relating to
constitution, etc of CAA) is amended as follows.

(2) 20After paragraph 8 insert—

“Executive members: terms and conditions

8A (1) The chief executive is to be employed on such terms and conditions
as the non-executive members may determine.

(2) Other executive members are to be employed on such terms and
25conditions as the chief executive may determine with the approval of
the chair and at least one other non-executive member.

(3) In sub-paragraphs (1) and (2) references to terms and conditions
include terms and conditions as to remuneration and the payment of
pensions, allowances or gratuities.

(4) 30The CAA shall make provision for the payment of pensions,
allowances and gratuities to or in respect of executive members in
accordance with their terms and conditions.”

(3) In paragraph 12 (staff)—

(a) after “a reference to” insert “a person who is—

(a) 35an executive member, or

(b)”, and

(b) at the end insert “(referred to in this Act as a “general employee”)”.

(4) In paragraph 13(1) (payment of pensions, allowances and gratuities) for “its
employees” substitute “its general employees”.

(5) In Schedule 3 to that Act (matters arising out of certain transfers to the CAA),
in paragraph 2(1) for “an employee” substitute “a general employee”.

98 CAA’s air navigation functions

(1) In section 66 of the Transport Act 2000 (CAA’s air navigation functions), for
5subsection (3) substitute—

“(3) The chief executive of the CAA must, with the approval of the chair and
at least one other non-executive member of the CAA, nominate another
executive member of the CAA for the purposes of this section.

(3A) A person nominated under subsection (3) must perform on the CAA’s
10behalf such of its air navigation functions as the Secretary of State may
specify.

(3B) The chief executive must consult the Secretary of State before
nominating a person under subsection (3).”

(2) In section 67 of that Act (national security nominee), in subsection (1) for
15“member” substitute “non-executive member”.

99 Transitional and saving provision

Schedule 14 (CAA membership: transitional and saving provision) has effect.

Further provision about CAA

100 CAA charges

(1) 20Section 11 of the Civil Aviation Act 1982 (schemes and regulations determining
CAA’s charges) is amended as follows.

(2) In subsection (1) omit “, after consultation with the Secretary of State,”.

(3) After that subsection insert—

“(1A) Before making a scheme under this section, the CAA must—

(a) 25consult the persons who, in its opinion, are likely to be affected
by the scheme or such of those persons as it thinks fit, and

(b) after consulting those persons, consult the Secretary of State.”

(4) In subsection (2) for “sixty days” substitute “14 days”.

(5) After subsection (3) insert—

“(3A) 30Before making regulations under this section, the Secretary of State
must consult the persons who, in the Secretary of State’s opinion, are
likely to be affected by the regulations or such of those persons as the
Secretary of State thinks fit.

(3B) Subsection (3A) does not apply if the Secretary of State is satisfied that
35such consultation is unnecessary having regard to consultation carried
out by the CAA in accordance with subsection (1A).”

(6) In section 16 of that Act (provision by CAA of assistance etc for Secretary of
State and others), in subsection (4A)—

(a) after “with” insert “—

(a)”, and

(b) at the end insert “, or

(b) the making of regulations under section 11(3).”

(7) 5In section 17 of that Act (provision by CAA of information etc for Secretary of
State), at the end insert—

“(4) Subsection (3) above does not apply in relation to information
furnished to the Secretary of State in connection with the making of
regulations under section 11(3).”

101 10Criminal proceedings

In section 20 of the Civil Aviation Act 1982 (supplementary provisions with
respect to the functions of CAA), after subsection (1) insert—

“(1A) The power conferred on the CAA by subsection (1)(a) includes power
to institute and carry on criminal proceedings in England and Wales or
15Northern Ireland.”

102 CAA efficiency

(1) Section 21 of the Civil Aviation Act 1982 (annual report) is amended as follows.

(2) In subsection (2), after paragraph (d) insert—

“(e) shall contain a statement by the CAA about efficiency in the
20performance of its functions (an “efficiency statement”);

(f) shall contain the auditors’ assessment mentioned in subsection
(2B).”

(3) After subsection (2) insert—

“(2A) The Secretary of State may from time to time give directions about
25matters that must be covered in an efficiency statement, including
matters relating to the plans or the past or present activities of the CAA.

(2B) The auditors appointed under section 15(2) in respect of an accounting
year must produce an assessment of the efficiency statement for that
year.”

103 30Civil sanctions

(1) Part 3 of the Regulatory Enforcement and Sanctions Act 2008 (civil sanctions)
is amended as follows.

(2) In Schedule 5 (designated regulators) at the appropriate place insert—

• “Civil Aviation Authority”.

(3) 35In Schedule 7 (powers under specified enactments to include power to make
provision for civil sanctions) at the appropriate place insert—

• “Civil Aviation Act 1982, sections 7, 61, 71, 71A, 86”.

104 Regulatory burdens

(1) Section 73 of the Regulatory Enforcement and Sanctions Act 2008 (functions to
which duty not to impose or maintain unnecessary burdens applies) is
amended as follows.

(2) 5In subsection (1), after paragraph (a) insert—

“(aa) the regulatory functions specified in subsection (2A),”.

(3) After subsection (2) insert—

“(2A) The regulatory functions referred to in subsection (1)(aa) are the
regulatory functions exercised by the Civil Aviation Authority under—

(a) 10Chapter 1 of Part 1 of the Transport Act 2000 (air traffic
services);

(b) Chapter 1 of Part 1 of the Civil Aviation Act 2012 (regulation of
operators of dominant airports).”

(4) In subsection (3) for “subsection (2)” substitute “subsection (2) or (2A)”.

105 15Disclosure of medical information

(1) Section 23 of the Civil Aviation Act 1982 (disclosure of information) is
amended as follows.

(2) In subsection (1) for “subsection (4)” substitute “subsections (4) and (4A)”.

(3) After subsection (4) insert—

“(4A) 20Nothing in subsection (1) above prohibits the disclosure of medical
information provided to the CAA in accordance with an Air
Navigation Order if—

(a) the disclosure is for the purposes of medical research approved
by a research ethics committee,

(b) 25the CAA considers that the research is likely to improve
understanding of risks to the health of the types of individual
who are required by an Air Navigation Order to provide
medical information to the CAA,

(c) the CAA considers that it would be difficult or expensive to take
30the steps necessary to enable all of the information to be
disclosed in reliance on subsection (1), and

(d) the information disclosed is anonymised.

(4B) For the purposes of subsection (4A)(d), information is anonymised if no
individual can be identified—

(a) 35from that information, or

(b) from that information and any other information which the
CAA has reasonable grounds for believing is likely to be in the
possession of the person to whom it is disclosed or is likely to
come into that person’s possession.”

(4) 40After subsection (6) insert—

“(7) In this section “research ethics committee” means a committee which
is—

(a) established to advise on the ethics of research investigations in
human beings, and

(b) recognised for that purpose by the Secretary of State, the Welsh
Ministers, the Scottish Ministers or the Department of Health,
Social Services and Public Safety in Northern Ireland or by a
body comprising two or more of those persons.”

5Miscellaneous

106 Dangerous flying

(1) Section 81 of the Civil Aviation Act 1982 (dangerous flying) is repealed.

(2) In consequence of subsection (1), that Act is amended in accordance with
subsections (3) to (7).

(3) 10In section 76 (liability of aircraft in respect of trespass etc), in subsection (1)
omit the words “and there has been no breach of section 81 below”.

(4) In section 92 (application of criminal law to aircraft), in the definition of “the
air navigation enactments” in subsection (5), for “81 to” substitute “82,”.

(5) In section 101 (power to apply certain provisions to Crown aircraft), in
15subsection (2) omit “81,”.

(6) In Part 3 of Schedule 13 (subordinate instruments: supplemental powers), in
paragraph 4(2) omit “81,”.

(7) In Schedule 14 (transitional and transitory provisions and savings), in
paragraph 7 omit “81,”.

107 20Offences under Civil Aviation Act 1982

(1) Section 99 of the Civil Aviation Act 1982 (offences) is amended as follows.

(2) In subsection (4)—

(a) for “or under” substitute “, under”, and

(b) at the end insert “or under an Air Navigation Order”.

(3) 25In subsection (5) omit paragraphs (c) and (d).

Part 3 Final provisions

108 Power to make consequential and transitional provision

(1) The Secretary of State may by regulations make consequential, transitional,
30transitory or saving provision in relation to any provision of this Act.

(2) The regulations may, in particular, amend, repeal, revoke or otherwise modify
legislation.

(3) Regulations under this section are to be made by statutory instrument.

(4) A statutory instrument containing regulations under this section is subject to
35annulment in pursuance of a resolution of either House of Parliament.

(5) In this section—

Civil Aviation BillPage 66

• “legislation”, in relation to regulations made in relation to a provision of
  this Act, means—

  (a)

  an enactment passed before the end of the Session in which this
  Act is passed, including an enactment contained in this Act, and

  (b)

  5an instrument made under an enactment before the provision of
  this Act comes into force;

• “enactment” means an enactment contained in—

  (a)

  an Act,

  (b)

  an Act or Measure of the National Assembly for Wales,

  (c)

  10an Act of the Scottish Parliament, or

  (d)

  Northern Ireland legislation.

109 Financial provision

There is to be paid out of money provided by Parliament any increase
attributable to this Act in the sums payable under any other Act out of money
15so provided.

110 Commencement

(1) The provisions of this Act come into force on such day as the Secretary of State
may by order appoint, subject to subsections (2) to (4).

(2) The following provisions come into force on the day on which this Act is
20passed—

(a) paragraphs 1 and 7 of Schedule 10 and section 76(5) so far as it relates
to those paragraphs, and

(b) this Part.

(3) The following provisions come into force at the end of the period of 2 months
25beginning with the day on which this Act is passed—

(a) sections 83 to 93 and Schedule 13,

(b) section 94,

(c) sections 95 to 99 and Schedule 14,

(d) section 101, and

(e) 30sections 105 to 107.

(4) The day appointed for the coming into force of section 3 must fall on or after 1
April 2014, unless paragraph 3 of Schedule 10, or provision having equivalent
effect, comes into force on or before the appointed day.

(5) An order under this section must be made by statutory instrument.

(6) 35An order under this section may—

(a) appoint different days for different purposes, and

(b) make transitional, transitory or saving provision.

111 Extent

(1) This Act extends to England and Wales, Scotland and Northern Ireland, subject
40to subsection (2).

(2) The amendments, repeals and revocations made by section 76 and Schedules 8
and 9 have the same extent as the provisions amended, repealed or revoked.

112 Channel Islands, Isle of Man and British overseas territories

(1) The powers in section 108(1) of the Civil Aviation Act 1982 (power to extend to
Channel Islands, Isle of Man and British overseas territories) are exercisable in
relation to the amendments of that Act made by or under this Act.

(2) 5The powers in section 39(3) of the Aviation Security Act 1982 (extension
outside United Kingdom) are exercisable in relation to the amendments of that
Act made by or under this Act.

(3) The power in section 107 of the Transport Act 2000 (extension outside United
Kingdom) is exercisable in relation to the amendments of provisions listed in
10section 107(2) of that Act made by or under this Act.

113 Short title

This Act may be cited as the Civil Aviation Act 2012.

SCHEDULES

Section 13

SCHEDULE 1 Appeals against determinations

Appeals against determinations

1 (1) 5The following may appeal to the Competition Appeal Tribunal against a
market power determination in respect of an airport area—

(a) a person who is the operator of the area at the time the determination
is made, and

(b) any other person whose interests are materially affected by the
10determination.

(2) A person who is the subject of an operator determination may appeal to the
Competition Appeal Tribunal against the determination.

(3) The making of an appeal under this paragraph in respect of a determination
does not suspend the effect of the determination, unless the Competition
15Appeal Tribunal orders otherwise.

Notice of appeal

2 (1) An appeal under paragraph 1 against a determination must be made by
sending a notice of appeal to the Registrar of the Competition Appeal
Tribunal.

(2) 20The notice must be received by the Registrar before the end of the period of
60 days beginning with the relevant day.

(3) In this paragraph “the relevant day” means the later of—

(a) the day on which the CAA publishes the notice of the determination,
and

(b) 25the day on which the CAA publishes the reasons for the
determination.

(4) Sub-paragraphs (1) and (2) have effect subject to provision in rules made
under section 15 of the Enterprise Act 2002 (Tribunal rules) after this
Schedule comes into force—

(a) 30as to the person to whom a notice of an appeal under paragraph 1
must be given;

(b) providing that such a notice must be received within a longer or
shorter period beginning with the relevant day.

Decisions on appeal

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

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

(b) that the determination was wrong in law;

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

(2) It may—

(a) 10confirm or set aside all or part of the market power determination or
operator determination;

(b) direct the CAA to make a further determination;

(c) give the CAA such other 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) If the CAA fails to comply with a direction to make a further market power
determination in respect of an airport area within the time specified by the
20Competition Appeal Tribunal, the Tribunal may make the determination.

(6) If the Competition Appeal Tribunal makes a market power determination
under sub-paragraph (5)—

(a) the determination has effect as if made by the CAA, and

(b) section 8 applies in relation to the determination as if the references
25to the CAA were references to the Competition Appeal Tribunal.

(7) If the CAA fails to comply with a direction to make a further operator
determination in respect of a person and an airport area within the time
specified by the Competition Appeal Tribunal, the Tribunal may make the
determination.

(8) 30If the Competition Appeal Tribunal makes an operator determination under
sub-paragraph (7)—

(a) the determination has effect as if made by the CAA under section
10(1), and

(b) sections 10(2) and 11(1) to (3) and (5) apply in relation to the
35determination as if the references to the CAA were references to the
Competition Appeal Tribunal.

Effect of suspending or setting aside market power determination

4 (1) This paragraph applies where—

(a) the CAA publishes a notice of a market power determination
40(“determination A”) in respect of an airport area (“area Z”),

(b) the CAA subsequently publishes a notice of another market power
determination (“determination B”) in respect of all or part of area Z
or in respect of an area that includes all or part of area Z,

(c) determination A ceases to have effect in respect of all or part of area
45Z by virtue of section 7(9) or (10), and