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How we helped
We acted as economic experts for three major airlines in their appeal against proposed charges at Heathrow Airport for the forthcoming five-year regulatory period. Our work consisted of preparing rigorously argued expert reports focusing on the cost of capital for investment in Heathrow.
We supported analysis by the regulator (the CAA) against claims made by Heathrow and also introduced our own analysis of where we believed the CAA had erred in the elements of the cost of equity and debt. We also countered claims made by Heathrow Airport Limited that its Regulated Asset Base (“RAB”) should be marked up to recover losses made during the Covid-19 period.
The CMA rejected all of Heathrow’s claims in respect of the cost of capital and also accepted our analysis in respect of the cost of indexed linked debt. The CMA also rejected Heathrow’s claim for a RAB markup.