PART 1Airports

CHAPTER 1Regulation of operators of dominant airports

Modifying licences

22Modifying licence conditions and licence area

(1)

The CAA may modify a licence by modifying—

(a)

the licence conditions, or

(b)

the area for which the licence is granted,

subject to section 23.

(2)

Before modifying a licence in reliance on this section, the CAA must—

(a)

publish a notice in relation to the proposed modification,

(b)

send a copy of the notice to the persons listed in subsection (3), and

(c)

consider any representations about the proposed modification that are made in the period specified in the notice (and not withdrawn).

(3)

Those persons are—

(a)

the holder of the licence, and

(b)

such bodies representing airport operators or providers of air transport services as the CAA considers appropriate.

(4)

The notice under subsection (2) must—

(a)

state that the CAA proposes to modify the licence,

(b)

specify the proposed modification,

(c)

give the CAA's reasons for the proposed modification,

(d)

state the effect of the proposed modification, and

(e)

specify a reasonable period for making representations.

(5)

If, after publishing the notice under subsection (2), the CAA decides not to modify the licence in reliance on this section, the CAA must—

(a)

publish a notice, giving its reasons, and

(b)

send a copy of the notice to the persons listed in subsection (3).

(6)

If, after complying with subsections (2) to (4) in relation to a modification, the CAA decides to modify the licence in reliance on this section, the CAA must—

(a)

publish a notice in relation to the modification, and

(b)

send a copy of the notice to the persons listed in subsection (3).

(7)

The CAA is not to be treated as having complied with subsections (2) to (4) in relation to a modification of a licence if the modification differs significantly from the modification proposed in the notice under subsection (2).

(8)

The notice under subsection (6) must—

(a)

specify the modification,

(b)

specify the date from which the modification has effect (subject to paragraphs 7, 8 and 12 to 14 of Schedule 2),

(c)

give the CAA's reasons for the modification,

(d)

state the effect of the modification,

(e)

state how it has taken account of any representations made in the period specified in the notice under subsection (2), and

(f)

state the reason for any differences between the modifications and those set out in the notice given under subsection (2).

(9)

In the case of a modification of a licence condition, the date specified under subsection (8)(b) must fall after the end of the period of 6 weeks beginning with the day on which the notice under subsection (6) was published (subject to paragraph 21(2) of Schedule 2).

23Restriction on power to modify

(1)

This section applies where—

(a)

a licence condition is subject to an exception (however expressed) relating to, or operating by reference to, financial arrangements specified or described in the licence,

(b)

the financial arrangements were entered into by the holder of the licence, or a person connected to the holder of the licence, before section 3 came into force, and

(c)

the CAA proposes to modify the licence by removing or restricting the exception.

(2)

The CAA may not make such a modification unless it has determined that—

(a)

there has been a material change of circumstances since the day on which the exception was included in the licence condition, and

(b)

for users of air transport services, the benefits of the modification are likely to outweigh any adverse effects.

(3)

On or before the day on which it publishes a notice under section 22(2) in respect of a proposal to make such a modification, the CAA must—

(a)

publish a notice of its determination under subsection (2) of this section, giving its reasons for the determination, and

(b)

send a copy of the notice to the persons listed in subsection (4).

(4)

Those persons are—

(a)

the holder of the licence, and

(b)

such bodies representing airport operators or providers of transport services as the CAA considers appropriate.

(5)

For the purposes of subsection (1)(b), financial arrangements entered into after section 3 came into force but pursuant to other financial arrangements entered into by the holder of the licence, or a person connected to the holder of the licence, before that time are to be treated as entered into before that time.

(6)

In subsection (2) “material change of circumstances” includes a material change in the terms of the financial arrangements.