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									Susie Talbot                                                                  FRA KM/G                  (0 69) 696-
Economic Regulation Group                                                     zi - gs                   93985
Civil Aviation Authority                                                      12/21/01                  Fax:-3079
CAA House
45-59 Kingsway

Fax 0044 – 20 7453 6244

Heathrow, Gatwick, Stansted and Manchester Airport’s Price Caps 2003 - 2008
Response to CAA Summary and Preliminary Conclusions of November 2001

Dear Mrs. Talbot,

thank you for the detailed provision of information during the review process as well as for the
ongoing constructive exchange of views. In addition to the comments you will be receiving by
IATA and our Star Alliance partners bmi british midland and SAS, we wish to emphasize that we

-   the intended move to separate price caps for the three BAA London airports with no cross
    subsidisation between these airports
-   the proposed close of automatic cost pass through / elimination of the ”s-factor” – despite
    the fact that in this special case we would like to get some more clarification especially on
    the impact on charges and how the existing differences in the stage of security / segregation
    of the various terminals will be treated
-   the idea of introduction of a service quality term - accompanied by intense efforts to set a fair
    and realistic generic standard
-   the facilitation of direct contracting between airports and airlines, given that such contracting
    is strictly limited to requests above an agreed generic standard

On the other hand we noted with regret that despite all contrary comments from airline side the
CAA still favours the move to dual till. For the reasons already given in previous correspondence
with bmi british midland - on behalf of Star Alliance - we have to point out again, that we oppose
such a development.

During the oral hearings in January 2002 Lufthansa will be represented by bmi british midland
and the IATA delegation.

Yours sincerely

Deutsche Lufthansa Aktiengesellschaft
Aviation Infrastructure Management

Ronald Zietz
General Manager

CC :    IATA      Laurie O‘Toole

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