As part of the economic regulation of BAA, the Civil Aviation Authority (CAA) introduced a service quality rebate scheme which started on 1 July 2003. The scheme has been updated in March 2008,  with an aim of improving the service standards at Heathrow.

This scheme covers service quality performance in the following areas:

• Serviceability (availability) of :
  Passenger Sensitive Equipment (PSE), which includes lifts, escalators, conveyors (moving walkways), Termianl 5 track transit system. The PSE has been split into two groups, a priorty list and a general list, to ensure key equipment is identified and monitored closesly, whilst keeping the rest of the equipment maintained    
• - Other equipment in the scheme, which includes: arrivals baggage reclaim belts, fixed electrical ground power (for aircraft on stands), stands, jetties, pre-conditioned air (for aircraft), and stand entry guidance (to assist aircraft parking)  
• - Queueing at the departures security search area, transfers security search, staff search, and control posts search (this is the security search for catering, flight crews and maintentnace equipemnt)The availability of pier service for aircraft
• Passenger perception of the availability of seating in the departures lounge, the quality of flight information systems, how easy it is to find their way around, and the cleanliness of toilets and concourse areas within the terminal buildings.

Performance standards have been set by the CAA. If BAA Heathrow fails to achieve any of these then rebates are paid to the Heathrow-based airlines. Some elements within the scheme have a higher rebate penalty than others.

The maximum amount of rebate penalty currently payable is 7% of airport charges income. This means that approximately £63 million at Heathrow is 'at risk'. Additonally the CAA have included a bonus scheme to further encourage high performance to the benefit of passengers. The maximum additional revenues achievable via bonuses at Heathrow is 2.24 % of airport charges, approximately £20 million.

Further information about the scheme

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