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This question has been rumbling in my head for some time, but was prompted by an article about taxi drivers striking due to an airport surcharge on their passengers. I don't fly often but know those who do, and there seems little effective choice but to pay charges for using an airport's proximal 'drop-off' area/zone; public transport may be variable, or infeasible, pedestrian access is poor, etc. In reading around this question, I see it has been debated in parliament, discussed on motoring forums, mentioned by motoring organisations (by way of the news), and questioned by industry groups (PDF).

Some factors / assumptions considered:

  • I imagine that by entering such an area one implicitly agrees to a contract to pay whatever charge there is for using it; I am not sure if an unexpectedly large charge (by that I mean one which a reasonable person would find surprising and/or refuse to pay if known in advance) might give rise to claims of unconscionability.

  • I also imagine that airports, given regulations surrounding their operation and the impracticalities of creating a competing major airport, might be treated as de facto monopolies.

  • I will assume for the purposes of this question that airports comply with provisions for mobility/disability issues; and that any other gratis areas for unloading motor passengers, however remote, are a beneficent courtesy graciously extended to users of the airport. Similarly, that any driver who is not using the area but accidentally enters it will have their fee voided or waived.

  • It seems that introducing and/or raising fees is a relatively easy way for airport management corporations to raise revenues. Maintaining effective throughput is sometimes mentioned by way of justification for such fees.

Can an airport set the fee for using a 'drop off zone' to be arbitrarily high? Can this be done at any point in time?

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  • Thanks to ohwilleke for the retag, much appreciated :) As goes for any of my Qs, please feel free to challenge the stated assumptions, any unstated assumptions you might infer, or even the entire frame of the question. Other jurisdictions are of course welcome too. I imagine particularly egregious practices may be challengeable ("the next customer's fee is $1M"), but my intent is to ask about the general case. Skimming the Hansard source I saw that there was a reference to a code of practice, but I am unsure if it is in effect. Cheers!
    – bertieb
    Commented Jun 3 at 22:29
  • Is there a certain law you feel says otherwise?
    – Tak
    Commented Jun 3 at 23:23
  • Many airports are operated by the municipality. So the rules are set by the people who make the laws.
    – Barmar
    Commented Jun 4 at 0:06
  • @Barmar that is exactly right.
    – Tak
    Commented Jun 4 at 3:26
  • @Tak I'm not sure, that's why I'm here :) My instincts tell me that there probably is not, because in the UK there tends to be a reactive rather than proactive approach to regulation; but given their status as (near) monopolies and as (I assume) highly regulated entities I could believe there is some statute, or regulator with the power to knock back charges deemed egregious. I am not sure how many in the UK are municipally-operated, but certainly my local airport and several others are run privately
    – bertieb
    Commented Jun 4 at 9:20

1 Answer 1

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No

Airports are subject to the Competition Act 1988 with the UK Civil Aviation Authority and the Competitions and Markets Authority having concurrent powers.

The Act prohibits price collusion and abuse of market power that affects trade in the UK. Unfair pricing is explicitly called out as abuse if the business has a “dominant position” within the “United Kingdom or any part of it.”

Note that high prices are not ipso facto “unfair” and that having the only taxi rank near an airport is not ipso facto a “dominant position”. A full analysis of the “market”, including defining what it is (is it taxi services or ground-transport services?), is needed to establish a breach.

A brief note that an airport may require a licence from the CAA in which case the CAA will directly regulate prices. At present, only Heathrow and Gatwick are licenced.

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  • Where does it say the prices will be set?
    – Tak
    Commented Jun 5 at 1:15

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