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3 October 2013, 07:10 | Updated: 3 October 2013, 08:21
The Civil Aviation Authority has published final proposals on how much Gatwick Airport can charge airlines.
The regulator has said it agrees with a cap on fees at 0.5% above RPI inflation set out by Gatwick in a series of price commitments to its users, over the next seven years.
The CAA has today published its detailed analysis saying it is a fair price and is in what it calls 'passengers' interests'.
Dame Deirdre Hutton, CAA Chair, said: "Our proposals demonstrate how we can regulate airports more flexibly where this seems best for passengers, but also setting a tough efficiency challenge. We expect the airports to work closely with airlines to provide high-quality services to passengers.
"Tackling the upward drift in Heathrow's prices is essential to safeguard its globally competitive position. The challenge for Heathrow is to maintain high levels of customer service while reducing costs. We are confident this is possible and that our proposals create a positive climate for further capital investment, in the passenger interest.
"Gatwick has tabled a revised price offer to airlines that we consider fair, and its new commitments framework offers a chance for a more commercially driven and tailored approach. To protect the diverse interests of passengers, we propose a licence based on the commitments. We would monitor the success of such a new approach and adjust our regulation over time to ensure it remains proportionate."
Gatwick Airport has responded saying it "cautiously welcomes the CAA's endorsement of Gatwick's proposed Commitments framework as a way to deliver better service levels, facilities and prices for passengers and airlines."