Overcast

Overcast

max temp: 15°C

min temp: 14°C

Search

Stansted: CAA to end price cap controls on airport’s cargo operations

10:33 25 March 2014

The cargo facilities at Stansted Airport (foreground) and  the main passenger terminal (top, centre).

The cargo facilities at Stansted Airport (foreground) and the main passenger terminal (top, centre).

Archant

Price cap controls on air cargo services at Stansted Airport are to end from April 1, the Civil Aviation Authority (CAA) has announced.

Following a two-year review, the CAA has concluded that Stansted does not have substantial market power in its cargo operations and that it should be free from regulation to compete with other airports for cargo services.

The move follows an announcement by the CAA in January that Stansted’s passenger business will also be deregulated from April 1.

Iain Osborne, director for regulatory policy at the CAA, said: “The CAA’s role in cargo is to look after the interests of the consumers who own air-freight, and they appear to have a lot of choice in the market.

“We only economically regulate airports where there is insufficient competition, and our assessment has not found evidence that this is the case regarding Stansted’s cargo services. This follows our earlier decision that Stansted’s passenger services do not have market power.

“Together, these decisions mean Stansted will not be economically regulated from April onwards. This gives Stansted an excellent opportunity to innovate and we expect to see competition drive the delivery of high quality services that meet the needs of both passengers and cargo owners.”

Graeme Ferguson, commercial director for cargo at Manchester Airports Group (MAG), which acquired Stansted Airport a year ago from the former BAA group, said: “The CAA’s decision to take Stansted’s cargo operations out of economic regulation is a clear endorsement of the changes MAG has made at Stansted under new ownership over the past 12 months.

“The move is a positive recognition by the CAA that in Stansted’s case, competition rather than regulation will deliver the best outcomes for customers.

“We believe there is a significant opportunity to grow the cargo business at Stansted by adopting a different commercial approach, and we are committing considerable time and effort engaging with cargo operators.

“With spare capacity to support significant growth and additional economic activity, MAG sees this announcement as a key development in its strategy for developing Stansted Airport into a thriving cargo airport and continuing the airport’s return to growth.”

Stansted’s cargo operation involves more than 210,000 tonnes of goods and 30,000 tonnes of mail a year to destinations across the Americas, the Far East, Africa and the Middle East.

Cargo operators from the airport include Asiana, FedEx, Martinair, Royal Mail, Panalpina, Silkway, Atlantic Airways, Titan, TNT and UPS. Earlier this month, Qatar Airways announced it will join Stansted’s cargo network when it begins a new service from Doha in May.

0 comments

A driver found asleep in his car with the door open in Ipswich town centre while above the legal alcohol limit has been banned from the road.

The man, in his 60s, had been karting at the circuit, near Beccles, when he was reportedly involved in a collision with another go-kart.

Police have said two Ipswich schoolgirls have reported being frightened by a man dressed as The Joker from Batman.

A team led by the world-famous architect who designed the Willis building in the mid-1970s is one of five groups bidding to design the new Orwell crossings near the centre of Ipswich.

Disruption on train services from Ipswich and Colchester is expected until 11am this morning (Tuesday, September 27) after a lorry hit a railway bridge at Romford.

Work started in summer 2012. It was supposed to be finished by Easter 2014.

Sports editor Mark Heath says Travel Ipswich has made his journeys to and from work a misery as traffic continues to back up around the town centre on a daily basis.

Border Force officers have foiled the biggest ever attempt to smuggle cigarettes into the UK after uncovering more than 11million cigarettes at the Port of Felixstowe.

Staff at Stansted Airport have taken to social media in an attempt to reunite a lost toy bunny with its owner.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24