Civil Aviation Auth. Passengers To Benefit From More Choice

  Civil Aviation Auth. - Passengers To Benefit From More Choice

RNS Number : 4718P
Civil Aviation Authority
24 October 2012


24 October 2012


Air passengers travelling to Moscow from London will benefit from additional
choice following a decision from the UK Civil Aviation Authority (CAA)
announced today. The CAA has decided that the two United Kingdom airlines that
will be entitled to operate between London and Moscow under bilateral
agreements with the Russian government will be British Airways (BA) from
Heathrow Airport, and easyJet from Gatwick Airport.

The two UK airlines previously entitled to operate between London and Moscow
were BA and BMI. Following BA's take-over of BMI, BA, easyJet and Virgin
Atlantic all made applications for permission to operate on this route. Where
airlines wish to operate more services than are permitted under an agreement
between the governments concerned, the CAA is tasked with deciding which of
them should be entitled to operate. In doing so the CAA aims to allocate the
rights to operate to the airlines that best serve air transport users' varied
needs, at the lowest prices consistent with a high standard of safety,
promoting competition, securing effective provision of civil air transport to
the UK and ensuring the effective use of UK airports.

The decision comes after a Scarce Capacity Hearing at which a Panel of CAA
Board Members considered the arguments put forward by each of the applicant
airlines. The CAA Panel decided to allow BA to continue to operate the
services they currently operate from London Heathrow Airport to Moscow
Domodedovo Airport and to grant easyJet permission to operate between London
Gatwick and Moscow Domodedovo.

Iain Osborne, CAA Director of Regulatory Policy, and chair of the scarce
capacity decision panel, said: "On balance, allocating scarce capacity to BA
and easyJet is likely to deliver the greatest benefit to consumers. easyJet's
proposal will introduce an innovative product into the market and has the
potential to deliver the greatest dynamic fare benefits for consumers."

"We concluded that easyJet's proposal would introduce a distinctly different
product into the market and would stimulate innovation on the route as a
whole, as well as satisfying and stimulating consumer demand that is currently
underserved, in particular: people who prefer or are content to use Gatwick."

easyJet are expected to begin operating services to Moscow from early 2013.
The CAA understands that BA will continue with its current schedule.

The decision document can be found on the CAA website here:

For further media information contact the CAA Press Office on: 0207 453 6030

Follow the CAA on

Notes to Editors

1. Outside the single European market, where UK based airlines wish to
operate more services than are available under the Air Services Agreement
between the UK Government and the foreign government, there is what is known
as "scarce capacity" and the affected routes are "capacity constrained
routes". In this circumstance, the CAA determines which airlines should be
awarded the right to operate the available services on these capacity
constrained routes.

2. The Civil Aviation (Allocation of Scarce Capacity) Regulations 2007 state
that in order to operate commercially on a capacity constrained route between
the UK and any other state, a Scarce Capacity Allocation Certificate is
required.Any UK or EU airline licensed or established in the UK is entitled
to apply for such a certificate. The decision to award the certificate rests
with the CAA.

3. The Civil Aviation (Allocation of Scarce Capacity) Regulations 2007 set
out the procedures for such a decision including the holding of a hearing. A
decision to grant, refuse to grant, revoke or vary (otherwise than on the
application of the holder) a Scarce Capacity Allocation Certificate will be
made by at least one Member of the CAA.

4. The CAA is the UK's specialist aviation regulator. Its regulatory
activities range from making sure that the aviation industry meets the highest
technical and operational safety standards to preventing holidaymakers from
being stranded abroad or losing money because of tour operator insolvency.

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MSCPGGMAUUPPGAC -0- Oct/24/2012 17:10 GMT
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