28 January, 2008 – Manchester Airport Freed from Economic Regulation
Transport Secretary, Ruth Kelly, has announced that Manchester Airport will be de-designated so that it will be able to set its own charges rather than having them regulated by the Civil Aviation Authority (CAA).
Manchester Airports Group has expressed its delight that the Secretary of State has decided to remove the burden of price control regulation from Manchester Airport, a decision it believes recognises that, today, the best regulator is the market.
Jonathan Bailey, Group External Affairs Director said: "he Secretary of State’s decision is a victory for common sense and testimony to our commitment to working in partnership with our airline customers to meet their needs and those of our passengers.
"The decision also allows the airport to save the millions of pounds that it has to spend on being regulated and instead invest them in improving the airport and pass the savings on to customers.
"Our extensive programme of consultation with airlines has been a key part of demonstrating to the government that we have an open business relationship with our customers that does not need to be regulated.
"We look forward to working with our airlines to continue to provide excellent value services to the benefit of Manchester and the wider region."
Ms Kelly commented: "In making my decision on Manchester I have taken into consideration the fact that other local airports, such as Liverpool airport, offer real choice for passengers.
"Furthermore, there is spare capacity at Manchester and competing airports now and for the foreseeable future, even allowing for expected growth in demand.
"The decision to de-designate Manchester will enable the airport to grow and develop without the costs of excessive regulation falling to passengers in the future."
Source: Manchester Airport press release