27.Sections 11 to 19 deal with circumstances where the conditions of licences may be modified. Various circumstances, including system developments and new technology may require or result in marked changes in the way in which air traffic services are provided, and there may be circumstances where licences need to be modified to reflect this. Section 11 allows the CAA to modify the conditions of the licence with the agreement of the licence holder, and allows the Secretary of State to veto any such modification. Sections 12 and 13 allow the CAA to refer to the Competition Commission matters relating to the provision of air traffic services by a licence holder which operate against the public interest. The Commission is required to investigate and report on whether modifications to the conditions of the licence are necessary. Section 14 requires that where the Commission’s report concludes that any matter specified in the reference operates, or is likely to operate, against the public interest and specifies modifications to the conditions of the licence, the CAA must make such modifications as it thinks are needed. Section 15 gives the Commission powers to direct the CAA not to make licence modifications proposed by the CAA in response to the Commission’s recommendations where the Commission considers that those modifications would not provide a remedy. Sections 16 – 18, set out the procedure for the Commission to propose modifications of its own. Section 19 also allows the Secretary of State to modify the conditions of the licence to such extent as he thinks is necessary or expedient when he is, by order, exercising certain powers under the Fair Trading Act 1973 relating to monopolies and mergers.
Commentary on Sections Part I: Air Traffic Chapter I: Air Traffic Services Sections 11 to 19: Modification of licences