Draft Civil Aviation Bill - Transport Committee Contents


Annex: Comments by witnesses on specific clauses in the draft bill


ClauseChange/comment (witness)
Clause 1 CAA's general duty Combine subsections (1) and (2) to reflect the linkages between promoting the interests of passengers and promoting competition in the industry. (Gatwick Airport Ev 55)
In Clause 1 Subsection (3) on matters to which the CAA must have regard, insert a new duty after Subsection 3 paragraphs (a) and (b): "the effect on the environment and on local communities of activities connected with the provision of airport operation services at the airport to which the licence relates." (Joint submissions from Hacan Clearskies, Gatwick Area Conservation Campaign, Stop Stansted Expansion and AirportWatch Ev 33)
Airline witnesses requested a primary or at minimum a secondary duty for the CAA to air transport service providers (including airlines) in Clause 1 Subsection (1) in addition to the current primary duty to air transport users. (Virgin Atlantic Airways, Ev 47, British Airways, Ev 51 , Q54 Brian Humphreys British Air Transport Association)
Clause 3 Secretary of State's general duty After Clause 3 Subsection 3 Paragraph (c) insert: "the effect on the environment and on local communities of activities connected with the provision of airport operation services at the airport to which the licence relates." (Joint submissions from Hacan Clearskies, Gatwick Area Conservation Campaign, Stop Stansted Expansion and AirportWatch, Ev 33)
Clause 7 Market power test Amend "Test A" to include a reference to the legal concept of "dominance", as it is already in "Test B". (Gatwick Airport, Ev 55)
Clause 13 Advance determinations If the CAA can regulate on the basis of a future event, ensure that the CAA is able to decide whether an airport could gain market power in the future as well as whether an airport might lose its market power. (Gatwick Airport, Ev 55)
Clause 14/Schedule 1 Appeals against determinations Ensure consistency of assessments related to airport operator appeals on market power decisions and licence conditions. "The bill should ensure that the Competition Appeal Tribunal (CAT) determines whether to uphold an appeal around market power and whether the remedy, in the form of the initial licence conditions, is proportionate." (Gatwick Airport, Ev 55)
Clause 23 Restrictions on powers to modify Guarantee that derogation remains in the bill, which prevents the regulator from removing exceptions for financing arrangements of airports under licence conditions. (Gatwick Airport, Ev 55)
Clause 24 Appeal to Competition Commission: conditions of new licences and Clause 25 Appeal to Competition Commission: modification of licence conditions Remove the ability of airlines to appeal airport licence conditions, including price controls, to avoid frivolous and time consuming appeals. (Gatwick Airport, Ev 55)
Clause 25 Appeal to Competition Commission: modification of licence conditions Add to Clause 25 Subsection (5): Paragraph (c) "that the appeal does not demonstrably show that it is in the interests of either the passenger or freight user." (Manchester Airport, Ev w5)
Clause 27 Determination of appeal: decision appealed against Give the CAA the final decision on licence conditions (as opposed to the Competition Commission) unless the Competition Commission believes the conditions will not address competition problems. (Gatwick Airport, Ev 55)
From Clause 39 Penalty for contravention of licence conditions to Clause 45 Appeals against orders and penalties Prevent application of penalties to conditions which are included in existing service quality regimes (SQR), which require airports to compensate airlines for failure to meet certain standards. (Gatwick Airport, Ev 55)
Clause 48 Power to obtain information Virgin Atlantic Airways questioned the rationale used to generate the figures in subsections (4) A fixed amount must not exceed £2,000,000 and (5) A daily amount must not exceed £100,000. (Ev 47)
Clause 67 Air transport services Clause 67 Subsection (1) should be more explicit in its definition of 'air transport users' as passengers and users of freight services. (Manchester Airport, Ev w5)
Clause 83 Enforcement of information notice Virgin Atlantic Airways questioned the rationale used to generate the figures in subsections (4) A fixed amount must not exceed £50,000 (5) A daily amount must not exceed £5,000. (Ev 47)
Clauses 91-97 Further provision about CAA British Airways suggested the following additions:

— A duty to operate efficiently; and

— A requirement that any charge should recover only the CAA's costs allocated to the relevant activity. (British Airways, Ev 51)

Clause 95 CAA charges Add a Subsection (8) to Clause 95: "As part of its scheme of charges, the CAA, may, where appropriate, levy charges directly upon airlines that utilise UK airports." (Manchester Airport, Ev w5)
Replace "14 days" in Subsection (4) with "six weeks". (British Airways, Ev 51)
Schedule 6 Restrictions on disclosing information Add a clause to Schedule 6 Paragraph (2) on disclosure with consent concerning safeguards against publication of sensitive information and limiting the use of information to the specific area of work of the CAA. Remove the list in Schedule 6 Paragraph (4). (British Airways, Ev 51)



 
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Prepared 19 January 2012