As part of the economic regulation of BAA, Heathrow Airport's parent company, the Civil Aviation Authority (CAA) introduced a service quality rebate scheme which started on 1 July 2003.

The scheme was updated in March 2008, with the aim of improving service standards at Heathrow and covers service quality performance, specifically the serviceability (availability) of the following equipment:

• Passenger Sensitive Equipment (PSE), which includes lifts, escalators, conveyors (moving walkways), and Terminal 5 track transit system. The PSE has been split into two groups, a priority list and a general list, to ensure key equipment is identified and monitored closely, whilst keeping the rest of the equipment maintained
• Other equipment in the scheme, including: 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).

It also includes the following areas of the airport:

• Queuing 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 maintenance equipment), and 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'. Additionally 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.

Performace history to date

View 2009 performance here
View 2008 performance here