ABSTRACT
The expectation is that in the near future the Airports Act will be amended in line with the Utilities Act, thus bringing airport regulation more in line with utility regulation. Airport regulation in the UK is based on the single till RAB-based approach. The starting point of this approach is the regulated firm's projected cost base. The more the focus shifts to outputs, the more high powered the regulatory approach could become. The dominant economic regulation model in the UK is RPI-X regulation. Regulatory credibility and commitment are key determining factors of the firm's behaviour. The forgoing stresses the importance of the institutional framework in which the regulator operates. The Civil Aviation Authority (CAA) consists of four groups: the safety regulatory group, economic regulatory group, directorate of airspace policy and the consumer protection group. The CAA has adopted an approach based on projected rather than actual depreciation.
