News
Deregulation on long-haul fares
22 November 2006
The Civil Aviation Authority (CAA) will no longer regulate long-haul air fares, the group has announced.
The move comes as the CAA says competition in the market is so great that regulation is no longer 'appropriate'.
CAA officials have revealed that the deregulation will happen in two stages. The first will come into effect from 1 December 2006 and will not concern flights between the UK and the US.
The second stage of deregulation will come into effect once current restrictions in the US-UK market have been removed.
'This is a historic step,' said the CAA's group director of economic regulation Harry Bush. 'The CAA has regulated fares for more than 30 years.
'Airline competition has now reached the point where it is simply no longer appropriate for a regulator to dictate fare levels.'
Consumer bodies were consulted before the decision was made, with there being a general consensus today's market no longer requires regulation.
© Adfero Ltd
The move comes as the CAA says competition in the market is so great that regulation is no longer 'appropriate'.
CAA officials have revealed that the deregulation will happen in two stages. The first will come into effect from 1 December 2006 and will not concern flights between the UK and the US.
The second stage of deregulation will come into effect once current restrictions in the US-UK market have been removed.
'This is a historic step,' said the CAA's group director of economic regulation Harry Bush. 'The CAA has regulated fares for more than 30 years.
'Airline competition has now reached the point where it is simply no longer appropriate for a regulator to dictate fare levels.'
Consumer bodies were consulted before the decision was made, with there being a general consensus today's market no longer requires regulation.
© Adfero Ltd
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