Transport Act 2000 (c. 38)

(The document as of February, 2008)

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(a) a duty imposed by section 8;

(b) a condition of a licence.

(2) But subsection (1) does not affect--

(a) a right of action in respect of an act or omission which takes place in the course of the provision of air traffic services;

(b) the power to make an order under section 20, a duty to comply with the order and a power to bring proceedings in respect of the duty.

Modification of licences

11 Modification by agreement

(1) The CAA may modify the conditions of a licence if its holder consents to the modifications.

(2) Before making modifications under this section the CAA must--

(a) publish a notice in such manner as the CAA thinks appropriate for bringing it to the attention of persons likely to be affected by the making of the modifications,

(b) serve a copy of the notice on the licence holder,

(d) consider any representations made in accordance with the notice.

(3) The notice must--

(a) state that the CAA proposes to make the modifications and state their effect and the reasons for so proposing, and

(b) state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposed modifications.

(4) If within the period stated under subsection (3)(b) the Secretary of State gives a direction to the CAA requiring it not to make the modifications the CAA must comply with the direction.

(5) As soon as practicable after making modifications under this section the CAA must send a copy of them to the licence holder and a copy to the Secretary of State.

12 References to Competition Commission

(1) The CAA may make to the Competition Commission a reference requiring the Commission to investigate and report on--

(a) whether any matters which are specified in the reference and which relate to the provision of air traffic services by or on behalf of a licence holder operate against the public interest or may be expected to do so;

(b) if so, whether the effects adverse to the public interest which the matters have or may be expected to have could be remedied or prevented by modifying the conditions of the licence.

(2) The CAA may at any time by notice given to the Commission vary a reference by adding to the matters specified in it or by excluding from it one or more of those matters; and on receiving a notice the Commission must give effect to the variation.

(3) To help the Commission in its investigation the CAA may specify in the reference or a variation of it--

(a) any effects adverse to the public interest which in its opinion the matters specified in the reference or variation have or may be expected to have;

(b) any modifications of the conditions of the licence by which in its opinion those effects could be remedied or prevented.

(4) As soon as practicable after making a reference or variation the CAA must--

(a) serve a copy of the reference or variation on the licence holder;

(b) publish particulars of the reference or variation in such manner as the CAA considers appropriate for bringing it to the attention of persons likely to be affected by it;

(5) If before the end of the period of 28 days starting with the day on which the Secretary of State receives the copy he gives a direction to the Commission requiring it not to proceed with the reference or not to give effect to the variation, the Commission must comply with the direction.

(6) To help the Commission in its investigation the CAA must give to the Commission--

(a) any information the CAA has which relates to matters within the scope of the investigation and which the Commission requests;

(b) any information the CAA has which relates to matters within the scope of the investigation and which the CAA thinks it would be appropriate for it to give without a request;

(c) any other help which the CAA is able to give in relation to matters within the scope of the investigation and which the Commission requests.

(7) In carrying out the investigation concerned the Commission must take account of any information given under subsection (6).

(8) In deciding under this section whether a matter operates, or may be expected to operate, against the public interest the Commission must have regard to the matters as respects which duties are imposed on the Secretary of State and the CAA by sections 1 and 2.

(9) The provisions listed in subsection (10) apply to references under this section as if--

(a) the functions of the Commission in relation to those references were functions under Parts IV, V, VI and VIII of the 1973 Act;

(b) the expression "merger reference" included a reference under this section;

(c) in section 70 of the 1973 Act references to the Secretary of State were to the CAA and the reference to three months were to six months.

(10) The provisions are--

(a) sections 70, 85 and 93B of the 1973 Act (time limit for report; witnesses and documents; and false or misleading information);

(b) section 24 of the [1980 c. 21.] Competition Act 1980 (modification of provisions about Commission's general functions);

(11) The 1973 Act is the [1973 c. 41.] Fair Trading Act 1973.

13 Reports on references

(1) In making a report on a reference under section 12 the Competition Commission--

(a) must include definite conclusions on the questions contained in the reference and such an account of its reasons for the conclusions as in its opinion facilitates a proper understanding of the questions and of the conclusions;

(b) if it concludes that any of the matters specified in the reference operate against the public interest or may be expected to do so, must specify the effects adverse to the public interest which the matters have or may be expected to have;

(c) if it concludes that any adverse effects so specified could be remedied or prevented by modifications of the conditions of the licence, must specify modifications by which the effects could be remedied or prevented.

(2) Section 82 of the [1973 c. 41.] Fair Trading Act 1973 (general provisions as to reports) applies to reports of the Commission on references under section 12 as it applies to reports of the Commission under that Act.

(3) A report of the Commission on a reference under section 12 must be made to the CAA.

(4) The CAA--

(a) must on receiving such a report send a copy to the licence holder and a copy to the Secretary of State;

(b) must, after the end of the specified period, publish the report in such manner as the CAA considers appropriate for bringing it to the attention of persons likely to be affected by it.

(5) But if the Secretary of State thinks that the publication of any matter would be against the public interest or any person's commercial interests, he may before the end of the specified period give a direction to the CAA requiring it to exclude the matter from every copy of the report to be published as mentioned above.

(6) The specified period is the period of 14 days starting with the day after the Secretary of State receives the copy under subsection (4).

14 Modification following report

(1) This section applies if a report of the Competition Commission on a reference under section 12--

(a) includes conclusions to the effect that any of the matters specified in the reference operate against the public interest or may be expected to do so,

(b) specifies effects adverse to the public interest which the matters have or may be expected to have,

(c) includes conclusions to the effect that the effects could be remedied or prevented by modifications of the conditions of the licence, and

(d) specifies modifications by which the effects could be remedied or prevented.

(2) The CAA must suggest such modifications of the conditions of the licence as it thinks are needed to remedy or prevent the adverse effects specified in the report.

(3) Before suggesting modifications the CAA must--

(a) have regard to the modifications specified in the report,

(b) publish a notice in such manner as the CAA thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the making of the modifications,

(d) consider any representations made in accordance with the notice (and not withdrawn).

(4) The notice must--

(a) state that the CAA proposes to suggest the modifications and state their effect and the reasons for so proposing, and

(b) state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposals.

(5) If the CAA suggests modifications under this section it must--

(a) give notice to the Commission setting out the modifications it suggests and the reasons for its suggestions, and

(b) send to the Commission copies of any representations made in accordance with the notice published under subsection (3) (and not withdrawn).

15 Commission's power to give direction

(1) This section applies if the Competition Commission is given notice under section 14.

(2) Within the permitted period the Commission may give a direction to the CAA--

(a) not to make the modifications set out in the notice, or

(b) not to make such of those modifications as are specified in the direction.

(3) But the Commission may give a direction only if it thinks the modifications set out in the notice are not the modifications which are needed to remedy or prevent the adverse effects specified in the Commission's report on the reference under section 12.

(4) If the Commission gives a direction it must--

(a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the direction, and

(b) serve a copy of the notice on the licence holder.

(5) The notice must set out--

(a) the modifications set out in the notice given under section 14,

(b) the direction, and

(6) If the permitted period expires without a direction being given under subsection (2) the CAA must make the modifications set out in the notice given under section 14.

(7) If within the permitted period a direction is given under subsection (2)(b) the CAA must make the modifications which are--

(a) set out in the notice given under section 14, and

(b) not specified in the direction.

(8) As soon as practicable after making modifications under this section the CAA must send a copy of them to the licence holder and a copy to the Secretary of State.

(9) The permitted period is the period of four weeks starting with the day the Commission is given notice under section 14.

(10) But if within that period--

(a) the Commission applies to the Secretary of State to extend it to six weeks, and

(b) he directs that it is to be so extended,

the permitted period is the period of six weeks starting with the day the Commission is given notice under section 14.

16 Position where Commission gives direction

(1) This section applies if the Competition Commission gives a direction under section 15(2).

(2) If the direction is given under section 15(2)(a) the Commission must itself make such modifications of the conditions of the licence as it thinks are needed to remedy or prevent the adverse effects specified in the Commission's report on the reference under section 12.

(3) If the direction is given under section 15(2)(b) the Commission must itself make such modifications of the conditions of the licence as it thinks are needed to remedy or prevent such of the adverse effects as--

(a) are specified in the Commission's report on the reference under section 12, and

(b) would not be remedied or prevented by the modifications set out in the notice under section 14 and not specified under section 15(2)(b).

(4) Before making modifications under this section the Commission must--

(a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the making of the modifications,

(b) serve a copy of the notice on the licence holder and a copy on the CAA, and

(5) The notice must--

(a) state that the Commission proposes to make the modifications and state their effect and the reasons for so proposing, and

(b) state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposed modifications.

(6) As soon as practicable after making modifications under this section the Commission must--

(a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the modifications, and

(b) serve a copy of the notice on the licence holder, a copy on the Secretary of State and a copy on the CAA.

(7) The notice under subsection (6) must--

(a) state that the modifications have been made,

(b) set them out, and

17 Commission's duty as to modifications under section 16

(1) The Competition Commission must exercise its functions under section 16(2) and (3) so as to maintain a high standard of safety in the provision of air traffic services; and that duty is to have priority over the application of subsections (2) to (5).

(2) The Commission must exercise its functions under section 16(2) and (3) in the manner it thinks best calculated--

(a) to further the interests of operators and owners of aircraft, owners and managers of aerodromes, persons travelling in aircraft and persons with rights in property carried in them;

(b) to promote efficiency and economy on the part of licence holders;

(d) to take account of any international obligations of the United Kingdom notified to the CAA by the Secretary of State (whatever the time or purpose of the notification) and notified to the Commission by the CAA;

(e) to take account of any guidance on environmental objectives given to the CAA by the Secretary of State after the coming into force of this section and notified to the Commission by the CAA.

(3) The only interests to be considered under subsection (2)(a) are interests regarding the range, availability, continuity, cost and quality of air traffic services.

(4) The reference in subsection (2)(a) to furthering interests includes a reference to furthering them (where the Commission thinks it appropriate) by promoting competition in the provision of air traffic services.

(5) If in a particular case there is a conflict in the application of the provisions of subsections (2) to (4), in relation to that case the Commission must apply them in the manner it thinks is reasonable having regard to them as a whole.

(6) The Commission must exercise its functions under section 16(2) and (3) so as to impose on licence holders the minimum restrictions which are consistent with the exercise of those functions.

18 Sections 15 and 16: general

(1) The provisions listed in subsection (2) apply in relation to the exercise by the Commission of its functions under section 15 or 16 as if--

(a) references in section 82(1) and (2) of the 1973 Act to a report of the Commission under that Act were references to a notice under section 15(4) or 16(4) or (6) above;

(b) references in section 85 of the 1973 Act to an investigation on a reference made to the Commission under that Act were references to an investigation by the Commission for the purposes of exercising its functions under section 15 or 16 above;

(c) the reference in section 93B of the 1973 Act to the Commission's functions under Part IV, V, VI or VIII of that Act were a reference to its functions under section 15 or 16 above.

(2) The provisions are--

(a) sections 82(1) and (2) of the 1973 Act (exclusion of certain matters and absolute privilege);

(b) section 85 of the 1973 Act (witnesses and documents);

(d) section 24 of the [1980 c. 21.] Competition Act 1980 (modification of provisions about Commission's general functions);

(e) Part II of Schedule 7 to the [1998 c. 41.] Competition Act 1998 (Commission's general functions).

(3) The 1973 Act is the [1973 c. 41.] Fair Trading Act 1973.

19 Modification by order under other enactments

(1) This section applies if--

(a) the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the 1973 Act, and

(b) the first or second requirement (set out below) is satisfied.

(2) The first requirement is that--

(a) the circumstances are as mentioned in section 56(1) of the 1973 Act (order on report on monopoly reference), and

(b) the monopoly situation exists in relation to the provision of air traffic services.

(3) The second requirement is that the circumstances are as mentioned in section 73(1) of the 1973 Act (order on report on merger reference) and--

(a) at least one of the two or more enterprises which ceased to be distinct enterprises was engaged in the provision of air traffic services, or

(b) at least one of the two or more enterprises which would cease to be distinct enterprises (in the application of section 73(1) by virtue of section 75(4)(e)) is engaged in the provision of air traffic services.

(4) The order mentioned in subsection (1) may also provide for the modification of the conditions of a licence to such extent as the Secretary of State thinks necessary or expedient to give effect to or take account of any provision made by the order.

(5) As soon as practicable after making modifications under this section the Secretary of State must send a copy of them to the licence holder and a copy to the CAA.

(6) Expressions used in this section and the 1973 Act have the same meanings in this section as in that Act.

(7) The 1973 Act is the [1973 c. 41.] Fair Trading Act 1973.

Enforcement

20 Orders for securing compliance

(1) If the CAA is satisfied that a licence holder is contravening or is likely to contravene a section 8 duty or a licence condition it must make a final order containing provision it thinks is needed to secure compliance with the duty or condition.

(2) If the CAA is not so satisfied but it appears to it that a licence holder is contravening or is likely to contravene a section 8 duty or a licence condition and that a provisional order is needed, it must make a provisional order containing provision it thinks is needed to secure compliance with the duty or condition.

(3) In deciding whether a provisional order is needed the CAA must have regard in particular to--

(a) the extent to which any person is likely to sustain loss or damage as a result of anything likely to be done or omitted in contravention of the section 8 duty or licence condition unless a provisional order is made, and

(b) the fact that the only remedy for a contravention of a section 8 duty or licence condition is under this section and section 24 (unless there is an act or omission which takes place in the course of the provision of air traffic services).

(4) A final or provisional order must require the licence holder to do or not to do specified things or things of a specified description.

(5) A final or provisional order--

(a) takes effect at a time determined by or under the order;

(b) must secure that that time is the earliest practicable time;

(6) A final order continues to have effect until such time (if any) as the CAA revokes it.

(7) A provisional order ceases to have effect at the termination time, and that is the earlier of--

(a) the end of the period (not exceeding three months) which is determined by or under the order and which starts when it takes effect;

(b) such time (if any) as the CAA revokes it.

(8) But if the CAA confirms a provisional order under subsection (9) before the termination time it continues to have effect until such time (if any) as the CAA revokes it.

(9) The CAA must confirm a provisional order (with or without modifications) if--

(a) it is satisfied that the licence holder is contravening or is likely to contravene a section 8 duty or a licence condition, and

(b) it thinks its confirmation (with any modifications) is needed to secure compliance with the duty or condition.

(10) In relation to a licence holder--

(a) a section 8 duty is a duty imposed on the holder by section 8;

(b) a licence condition is a condition of the licence concerned.

(11) In sections 21 to 25 any reference to a section 8 duty or to a licence condition or to a final or provisional order must be construed in accordance with this section.

(12) This section has effect subject to section 21.

21 Exceptions

(1) The CAA must not make a final order or make or confirm a provisional order if it is satisfied that--

(a) the duty imposed on it by section 2 precludes it from doing so, or

(b) the most appropriate way of proceeding is under the [1998 c. 41.] Competition Act 1998.

(2) If the CAA is satisfied that any of the conditions in subsection (3) applies it must not make a final order or make or confirm a provisional order unless it believes that it is appropriate to do so.

(3) The conditions are that--

(a) the licence holder has agreed to take and is taking all the steps the CAA thinks appropriate to secure or facilitate compliance with the duty or condition concerned;

(b) the contraventions or apprehended contraventions are trivial;

(c) the contraventions or apprehended contraventions will not adversely affect the interests of the persons referred to in subsection (4);

(d) the Secretary of State has made an application under section 28 for an air traffic administration order in relation to the licence holder.

(4) The persons are operators and owners of aircraft, owners and managers of aerodromes, persons travelling in aircraft and persons with rights in property carried in them.

(5) These interests are the only ones to be considered under subsection (3)(c)--

(a) interests regarding safety;

(b) interests regarding the range, availability, continuity, cost and quality of air traffic services.

22 Procedural requirements

(1) Before making a final order or confirming a provisional order the CAA must--

(a) publish a notice in such manner as it thinks appropriate for bringing the matters to which the notice relates to the attention of persons likely to be affected by them,

(b) serve on the licence holder a copy of the notice and a copy of the order proposed (or proposed to be confirmed), and

(2) The notice must--

(a) state that the CAA proposes to make or confirm the order and state its effect,

(b) state the section 8 duty or licence condition with which the order is intended to secure compliance, the acts or omissions which the CAA thinks constitute (or would constitute) contraventions of the duty or condition, and any other facts which it thinks justify the making or confirmation of the order, and

(c) state the period (not less than 21 days starting with the date of publication of the notice) within which representations may be made regarding the proposed order or confirmation.

(3) The CAA must not make a final order with modifications, or confirm a provisional order with modifications, unless--

(a) the licence holder consents to the modifications, or

(b) subsection (4) is complied with.

(4) This subsection is complied with if the CAA--

(a) serves on the licence holder a notice of the proposal to make or confirm the order with modifications,

(b) states in the notice the period (not less than seven days starting with the date of the service of the notice) within which representations may be made regarding the proposed modifications, and

(5) But if the modifications are trivial the CAA must be treated as complying with subsection (4) if it serves on the licence holder a notice of the proposal to make or confirm the order with modifications.

(6) As soon as practicable after making a final order or making or confirming a provisional order the CAA must--

(a) serve a copy of the order on the licence holder and a copy on the Secretary of State, and

(b) publish the order in such manner as the CAA thinks appropriate for bringing it to the attention of persons likely to be affected by it.

(7) Before revoking a final order or a provisional order which has been confirmed the CAA must--

(a) publish a notice in such manner as it thinks appropriate for bringing the revocation to the attention of persons likely to be affected by it,

(b) serve a copy of the notice on the licence holder, and

(8) The notice must--

(a) state that the CAA proposes to revoke the order and state its effect, and

(b) state the period (not less than 21 days starting with the date of publication of the notice) within which representations may be made regarding the proposed revocation.

(9) If after acting under subsection (7) the CAA decides not to revoke the order it must--

(a) publish a notice of its decision in such manner as it thinks appropriate for bringing the decision to the attention of persons likely to be affected by it, and

(b) serve a copy of the notice on the licence holder.

(10) If the CAA is satisfied as mentioned in section 21(1) it must--

(a) serve a notice that it is so satisfied on the licence holder, and

(b) publish the notice in such manner as it thinks appropriate for bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(11) If the CAA is satisfied as mentioned in section 21(2) and it does not believe it is appropriate to make a final order or make or confirm a provisional order, it must--

(a) serve a notice to that effect on the licence holder, and

(b) publish the notice in such manner as it thinks appropriate for bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

23 Validity of orders

(1) This section applies if a licence holder to which a final or provisional order relates is aggrieved by the order and wants to question its validity on the ground that--

(a) its making or confirmation was not within the powers conferred by sections 20 and 21, or

(b) any of the requirements of section 22(1) to (6) have not been complied with.

(2) The licence holder may apply to the court.

(3) If a copy of the order as made or confirmed was served on the licence holder the application to the court must be made within the period of 42 days starting with the day the copy was served on it.

(4) On an application under this section the court may quash the order or any provision of it if satisfied that--

(a) the making or confirmation of the order was not within the powers conferred by sections 20 and 21, or

(b) the interests of the licence holder have been substantially prejudiced by a failure to comply with the requirements of section 22(1) to (6).

(5) Except as provided by this section, the validity of a final or provisional order may not be questioned in any legal proceedings.

(6) A reference to the court is to--

(a) the High Court in relation to England and Wales or Northern Ireland;

(b) the Court of Session in relation to Scotland.

24 Effect of orders

(1) The licence holder to which a final or provisional order relates has a duty to comply with it.

(2) The duty is owed to any person who may be affected by a contravention of the order.

(3) A breach of the duty which causes such a person to sustain loss or damage is actionable by him.

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