Europe Economics provided advice to the CAA on the use of long-run incremental cost (LRIC) estimates in assessing the competitive price level and the existence of market power, in December 2012. The CAA has published our work as part of its ‘Minded To
’ report for the Stansted Market Power Assessment.
Our work is also referenced in the CAA’s initial proposals
for economic regulation at Stansted.
Our work on LRIC is also referenced in the CAA’s initial proposals
for economics regulation for Gatwick Airport. This document includes GAL’s comments on our work and our response.