LONDON, Oct 17 (Reuters) - Britain's aviation body said itwas considering deregulating the fees which London's StanstedAirport charges airlines, citing deals with Ryanair andeasyJet that could impact the airport's power over lowcost and charter carriers.
In December, the Civil Aviation Authority (CAA) had saidBritain's fourth busiest airport should not be fully deregulatedbecause of substantial market power.
The Civil Aviation Act of 2012 sets a market power test aspart of the process for periodically deciding whether a Britishairport's user charges need to be regulated.
"Our aim is to protect passengers, so we will act if themarket fails. But regulation must achieve more benefits forconsumers than it costs," CAA Group Director of RegulatoryPolicy, Iain Osborne, said on Thursday.
"That is why, following the airport's recent deals witheasyJet and Ryanair, it is sensible for us to consider whetherregulation remains the best thing for Stansted's passengers," headded in a statement.
The CAA has now launched a consultation to ask stakeholdershow the two agreements affect Stansted's market powerassessment. A final determination will be published in early2014 and the form that regulation will take for the airport willbe finalised after that.
Stansted, which lies 50 kilometres north east of centralLondon, agreed a 10-year deal with Ryanair to cut the feeslevied on the Irish airline in return for it increasing itsflights in September.
In June, the airport's owner, Manchester Aiports Group,reached a deal with easyJet to more than double the carrier'straffic at Stansted during the next five years.
easyJet (EZJ)