Law

Transport Act 2000

United Kingdom · statute

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In force since 2026-10-29, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 428 provisions
  1. Title and introductory text
  2. 1 Secretary of State’s general duty.
  3. 2 CAA’s general duty.
  4. 3 Restrictions on providing services.
  5. 4 Exemptions.
  6. 5 Licences: general.
  7. 6 Licences: grant.
  8. 7 Licences: provisions.
  9. 8 Duties of licence holders.
  10. 9 Power to exclude services from effect of section 8.
  11. 10 Breach of duties or conditions.
  12. 11 Modification of a licence
  13. 11A Modification of licence: procedure
  14. 11B Restrictions on power to modify licence conditions
  15. 12 References to Competition and Markets Authority.
  16. 12A References under section 12: time limits
  17. 12B References under section 12: application of Enterprise Act 2002
  18. 13 Reports on references.
  19. 14 Modification following report.
  20. 15 CMA's power to give direction.
  21. 16 Position where CMA gives direction.
  22. 17 CMA's duty as to modifications under section 16.
  23. 18 Sections 15 and 16: general.
  24. 19 Modification by order under other enactments.
  25. 19A Appeal to Competition and Markets Authority
  26. 19B When appeals may be allowed
  27. 19C Determination of appeal
  28. 19D Determination of appeal: time limits
  29. 19E Determination of appeal: publication etc
  30. 19F Procedure on appeals
  31. 20 Enforcement
  32. 21 Exceptions.
  33. 22 Procedural requirements.
  34. 23 Validity of orders.
  35. 24 Effect of orders.
  36. 25 Power to obtain information
  37. 25A Imposing penalties
  38. 25B Recovering penalties
  39. 25C Statement of policy on penalties
  40. 26 Protection of licence companies etc.
  41. 27 Duty to make order.
  42. 28 Power to make order.
  43. 29 Air traffic administration orders.
  44. 30 Petitions and orders: supplementary.
  45. 31 Government financial help.
  46. 32 Guarantees under section 31.
  47. 33 Northern Ireland.
  48. 34 Investigations.
  49. 35 Register.
  50. 36 Land.
  51. 37 Licence holders as statutory undertakers.
  52. 38 Directions in interests of national security etc.
  53. 39 Directions relating to the environment.
  54. 40 Interpretation.
  55. 40A Connected persons
  56. 41 Meaning of transfer scheme.
  57. 42 Transfer schemes: supplementary.
  58. 43 Transfer schemes made by CAA.
  59. 44 Effect of scheme made by CAA.
  60. 45 Transfer schemes made by Secretary of State.
  61. 46 Information for purposes of section 45.
  62. 47 Accounting provisions.
  63. 48 Accounting provisions: interpretation.
  64. 49 Issue of securities.
  65. 50 Government investment in securities.
  66. 51 Crown shareholding.
  67. 52 Loans.
  68. 53 Guarantees.
  69. 54 Grants.
  70. 55 Trustee investments.
  71. 56 Shadow directors.
  72. 57 Extinguishment of liabilities.
  73. 58 Securities to be issued.
  74. 59 Securities: other provisions.
  75. 60 Enforcement of certain obligations.
  76. 61 Special provisions about land.
  77. 62 Exercise of functions through nominees.
  78. 63 Further provisions about transfer schemes.
  79. 64 Tax.
  80. 65 Interpretation.
  81. 66 Air navigation: directions.
  82. 67 National security.
  83. 68 Directions: further provision.
  84. 69 Directions: supplementary.
  85. 70 General duty.
  86. 71 Information for purposes of Chapter III.
  87. 72 Interpretation.
  88. 73 Charges for services.
  89. 74 Publication, commencement, amendment and revocation.
  90. 75 Specifications: supplementary.
  91. 76 Liability, recovery etc.
  92. 77 Chargeable air services.
  93. 78 Amounts for recovery etc.
  94. 79 Further duties of the CAA.
  95. 80 Secretary of State’s duties.
  96. 81 Records.
  97. 82 Offences.
  98. 83 Detention and sale.
  99. 84 Interpretation.
  100. 85 Interpretation of Chapter V.
  101. 86 Functions exercisable by CAA and CMA
  102. 87 CAA’s 2002 Act functions.
  103. 88 CAA’s 1998 Act functions.
  104. 89 Carrying out functions.
  105. 90 Publication of information and advice.
  106. 91 Review and information.
  107. 92 Secretary of State’s directions to CAA.
  108. 93 Control in time of hostilities etc.
  109. 94 Orders for possession of aerodromes etc.
  110. 95 Sections 93 and 94: interpretation.
  111. 96 Civil Aviation Authority Pension Scheme.
  112. 97 Amendments.
  113. 98 Air traffic services.
  114. 99 The CAA.
  115. 100 Service of documents.
  116. 101 Making of false statements etc.
  117. 102 Disclosure of information.
  118. 103 Orders and regulations.
  119. 104 Directions.
  120. 105 Crown application.
  121. 106 The Crown: other provisions.
  122. 107 Extension outside United Kingdom.
  123. 108 Local transport plans.
  124. 109 Further provision about plans: England
  125. 109ZA Combined authorities and combined county authorities: adoption of local transport plans
  126. 109A Approval of plans: Wales
  127. 109B Further provision about plans: Wales
  128. 109C Transitional provisions: Wales
  129. 110 Bus strategies.
  130. 111 Consultation and publicity about bus strategies.
  131. 112 Plans and strategies: supplementary.
  132. 113 Role of councils in relation to policies etc of ITAs, combined authorities & CCAs
  133. 113A Modification of provisions about plans and strategies: Wales
  134. 113B Directions concerning plans and strategies: Wales
  135. 113BA Bus network accessibility plans
  136. 113C Advanced quality partnership schemes
  137. 113D Advanced quality partnership schemes: registration restrictions
  138. 113E Advanced quality partnership schemes: facilities, measures and standards
  139. 113F Advanced quality partnership schemes: traffic regulation orders
  140. 113G Notice and consultation requirements
  141. 113H Making of scheme
  142. 113I Postponement of scheme or of provision of particular facilities, taking of particular measures or provision of particular standards of service
  143. 113J Effect of scheme
  144. 113K Regulations about schemes involving existing facilities or measures which are already in effect
  145. 113L Variation or revocation of schemes
  146. 113M Variation: supplementary
  147. 113N Regulations about schemes
  148. 113O Guidance about schemes
  149. 114 Quality partnership schemes.
  150. 115 Notice and consultation requirements.
  151. 116 Making of scheme.
  152. 117 Postponement of scheme or of provision of particular facilities or standards of service
  153. 118 Effect of scheme.
  154. 119 Regulations about schemes involving existing facilities.
  155. 120 Variation or revocation of schemes.
  156. 121 Variation: supplementary.
  157. 122 Regulations about schemes.
  158. 123 Guidance about schemes.
  159. 123A Franchising schemes
  160. 123B Assessment of proposed scheme
  161. 123C Notice of assessment
  162. 123D Report on assessment of proposed scheme
  163. 123E Consultation
  164. 123F Consultation document
  165. 123G Response to consultation
  166. 123H Making and publication of scheme
  167. 123I Postponement of local service contracts
  168. 123J Effect of local service contracts: registration requirements and provision of services
  169. 123K Local service contracts
  170. 123L Exceptions to section 123K
  171. 123M Variation of scheme
  172. 123MA Variation of scheme: supplementary
  173. 123N Revocation of scheme
  174. 123O Interim services and replacement services
  175. 123P Service permits
  176. 123Q Application for service permit
  177. 123R Conditions
  178. 123S Revocation and suspension
  179. 123T Appeals
  180. 123U Regulations about schemes
  181. 123V Transitional provision about schemes
  182. 123W Guidance about schemes
  183. 123X Local service contracts: application of TUPE
  184. 124 Quality contracts schemes.
  185. 125 Notice and consultation requirements.
  186. 126 Approval of proposed schemes for areas in Wales
  187. 126A Boards for proposed schemes for areas in England
  188. 126B Advice by boards or their Commissioners
  189. 126C Requests for boards to begin consideration etc of proposed schemes
  190. 126D Consideration of proposed schemes by boards
  191. 126E Practice and procedure of boards
  192. 127 Making of scheme.
  193. 127A Appeals against the making of schemes for areas in England
  194. 127B Powers of the Transport Tribunal on an appeal under section 127A
  195. 128 Postponement of scheme.
  196. 129 Effect of scheme.
  197. 130 Tendering for quality contracts.
  198. 131 Exceptions from section 130.
  199. 131A Continuation of schemes for further periods
  200. 131B Meaning of “exempt continuation proposal”
  201. 131C Continuation of schemes for areas in England: procedure
  202. 131D Continuation of schemes for areas in Wales: procedure
  203. 131E Appeals where proposed continuation considered exempt
  204. 131F Appeals where proposed continuation considered non-exempt
  205. 132 Variation or revocation of scheme.
  206. 132A Appeals where proposed variation considered exempt
  207. 132B Exemption from s.132 for specific variations directed by Tribunal
  208. 132C Power of authorities to provide services in exceptional circumstances
  209. 132D Period for which interim service may be provided
  210. 133 Regulations about schemes.
  211. 134 Transitional provision about schemes.
  212. 134A Guidance about schemes
  213. 134B Quality contracts: application of TUPE
  214. 134C Advanced ticketing schemes
  215. 134D Notice and consultation requirements
  216. 134E Making of scheme
  217. 134F Effect of scheme
  218. 134G Guidance
  219. 135 Joint and through ticketing schemes.
  220. 136 Notice and consultation requirements.
  221. 137 Making of scheme.
  222. 138 Effect of scheme.
  223. 138A Enhanced partnership plans and schemes
  224. 138B Further parties to a scheme
  225. 138C Requirements in respect of local services
  226. 138CA Requirements enabling travel by persons with disabilities
  227. 138D Facilities and measures
  228. 138E Provision relating to variation or revocation
  229. 138F Preparation, notice and consultation
  230. 138G Making of plans and schemes
  231. 138H Content of scheme
  232. 138I Postponement of scheme or part of scheme
  233. 138J Effect of plans and schemes
  234. 138K Variation
  235. 138KA Variation where scheme includes provision under section 138E
  236. 138L Variation: preparation, notice and consultation
  237. 138M Variation: making the variation
  238. 138N Variation: supplementary
  239. 138O Revocation
  240. 138P Regulations about plans and schemes
  241. 138Q Transitional provision about schemes
  242. 138R Guidance about plans and schemes
  243. 138S Application of TUPE
  244. 139 Information about bus services.
  245. 140 Duty of authority to make information available.
  246. 141 Bus information: supplementary.
  247. 141A Power to require provision of information about English bus services
  248. 142 Traffic regulation conditions to reduce or limit pollution.
  249. 143 Power to obtain information about local services.
  250. 143A Power to obtain information: franchising schemes
  251. 143B Power to obtain information about local services: enhanced partnership schemes
  252. 144 Civil penalties for bus lane contraventions.
  253. 144A Power of local transport authorities to make bus byelaws
  254. 144B Byelaws: procedure
  255. 144C Byelaws: copies and evidence
  256. 144D Powers of authorised persons in relation to byelaws
  257. 144E Fixed penalty notices
  258. 144F Training about crime and anti-social behaviour
  259. 144G Application of training requirement: services in Wales
  260. 145 Mandatory concessions outside Greater London.
  261. 145A England: mandatory concessions for journeys not beginning on the London bus network
  262. 145B Wales: mandatory concessions
  263. 146 Mandatory concessions: supplementary.
  264. 147 Wales: variation of mandatory concessions
  265. 148 Enforcement.
  266. 149 Reimbursement of operators.
  267. 150 Procedure for reimbursement arrangements determined by authority.
  268. 151 Concessions in Greater London.
  269. 151A Use of zero-emission vehicles for local services in England
  270. 152 Agreements providing for service subsidies.
  271. 153 Competition test: functions and agreements relating to buses
  272. 154 Grants to bus service operators.
  273. 154A Grants by local transport authorities in England
  274. 155 Sanctions
  275. 156 Non-metropolitan transport grants.
  276. 157 Grants to Integrated Transport Authorities , combined authorities and combined county authorities
  277. 158 Repayment of grants towards bus fuel duty.
  278. 159 Abolition of financial plans of Passenger Transport Executives.
  279. 160 Part II: regulations and orders.
  280. 161 Part II: minor and consequential amendments.
  281. 162 Interpretation of Part II.
  282. 163 Preliminary.
  283. 164 Local charging schemes.
  284. 165 Joint local charging schemes.
  285. 165A Joint local-ITA charging schemes
  286. 166 Joint local-London charging schemes.
  287. 166A Joint ITA-London charging schemes
  288. 167 Trunk road charging schemes.
  289. 168 Charging schemes to be made by order.
  290. 169 Confirmation of charging schemes.
  291. 170 Charging schemes: consultation and inquiries.
  292. 171 Matters to be dealt with in charging schemes.
  293. 172 Charging schemes: supplementary provision as to contents
  294. 172A Suspension of charging schemes
  295. 173 Penalty charges.
  296. 174 Examination, entry, search and seizure.
  297. 175 Immobilisation etc.
  298. 176 Equipment etc.
  299. 177 Traffic signs.
  300. 177A Power to require information
  301. 178 Preliminary.
  302. 179 Local licensing schemes.
  303. 180 Joint local licensing schemes.
  304. 181 Joint local-London licensing schemes.
  305. 182 Workplace parking places.
  306. 183 Licensing schemes to be made by order.
  307. 184 Confirmation of licensing schemes.
  308. 185 Licensing schemes: consultation and inquiries.
  309. 186 Matters to be dealt with in licensing schemes.
  310. 187 Licensing schemes: exemptions etc.
  311. 188 Licences.
  312. 189 Penalty charges.
  313. 190 Rights of entry.
  314. 191 Financial provisions about schemes.
  315. 192 Powers of authorities.
  316. 193 Guidance.
  317. 194 Information.
  318. 195 Determination of disputes, appeals and evidence.
  319. 196 Crown application.
  320. 197 Part III: regulations and orders.
  321. 198 Interpretation of Part III.
  322. 199 Amendments of Greater London Authority Act.
  323. 200 Exemption from local non-domestic rating.
  324. 201 The Authority.
  325. 202 Membership and chairing.
  326. 203 Other senior appointments.
  327. 204 Further provisions.
  328. 205 Purposes.
  329. 206 Strategies.
  330. 207 Manner of exercise of functions.
  331. 208 Directions, guidance and advice by Scottish Ministers.
  332. 209 Directions, guidance and advice: supplementary.
  333. 210 Validity of transactions.
  334. 211 Financial assistance etc.
  335. 212 Securing of services by franchising.
  336. 213 Limited additional powers to provide railway services.
  337. 214 Securing provision of substitute bus and taxi services.
  338. 215 Assumption of functions of Franchising Director.
  339. 216 Assumption of certain functions of the Office of Rail and Road.
  340. 217 Assumption of Board’s functions relating to transport police.
  341. 218 Functions relating to Board’s property.
  342. 219 Power to make bye-laws.
  343. 220 Power to make transfer schemes.
  344. 221 Power to promote and oppose Bills.
  345. 222 Other incidental powers.
  346. 223 Regulator’s power to require provision etc. of railway facilities.
  347. 224 Amendment of objectives.
  348. 225 Penalties.
  349. 226 Orders for securing compliance.
  350. 227 Renaming of committees.
  351. 228 Extension of functions.
  352. 229 Financial and procedural changes.
  353. 230 Regulator’s general approvals of access agreements etc.
  354. 231 Review of access charges by Regulator.
  355. 232 Amendment of access agreements.
  356. 233 Prospective facility owners, proposed facilities etc.
  357. 240 Transfer of Board’s property etc. to Secretary of State.
  358. 241 Winding down and abolition of Board.
  359. 242 Licence modifications following Competition Commission report.
  360. 243 Competition functions of Regulator.
  361. 244 Authority’s duty to continue Board’s practice of indexation.
  362. 245 Amendments of pension protection provisions.
  363. 246 Passenger Transport Executives.
  364. 247 Standards.
  365. 248 Substitute services to be suitable for disabled passengers.
  366. 249 Freight assistance by Scottish Ministers and Welsh Assembly.
  367. 250 Taxation of transfers.
  368. 251 Abolition of requirements for Treasury approval.
  369. 252 Part IV: minor and consequential amendments.
  370. 253 Part IV: transitionals and savings.
  371. 254 Interpretation of Part IV.
  372. 255 Charge for whole duration of works.
  373. 256 Charges where works unreasonably prolonged.
  374. 257 Compulsory driver training courses.
  375. 258 Register of approved instructors: destination of appeals.
  376. 259 Taking effect of decisions about instructors.
  377. 260 Training and instructors: minor and consequential amendments.
  378. 261 Increase of fine for breach of obligation to hold operator’s licence.
  379. 262 Detention of vehicle used without operator’s licence.
  380. 264 Type approval: individual exemptions.
  381. 265 Vehicles subject to regulation as private hire vehicles.
  382. 266 Power to prohibit driving of vehicle.
  383. 267 London service permits: appeals.
  384. 268 Quiet lanes and home zones.
  385. 270 School crossing patrols.
  386. 271 Stands etc. for bicycles or motor cycles.
  387. 272 Financial assistance for inland waterway and sea freight.
  388. 273 Offences: general.
  389. 274 Repeals and revocations.
  390. 275 Commencement.
  391. 276 Transitionals and savings.
  392. 277 Power to make amendments.
  393. 278 Financial provision.
  394. 279 Extent.
  395. 280 Short title.
  396. SCHEDULE A1 Appeals under section 19A
  397. SCHEDULE B1 Enforcement of duties under section 8 and licence conditions
  398. SCHEDULE C1 Information
  399. SCHEDULE 1 Air traffic administration orders: general
  400. SCHEDULE 2 Air traffic administration orders: schemes
  401. SCHEDULE 3 Air traffic administration orders: Northern Ireland
  402. SCHEDULE 4 Licence holders: land
  403. SCHEDULE 5 Licence holders as statutory undertakers
  404. SCHEDULE 6 Transfer schemes
  405. SCHEDULE 7 Transfer schemes: tax
  406. SCHEDULE 8 Amendments about air traffic
  407. SCHEDULE 9 Air traffic: information
  408. Schedule 9A Procedure for varying franchising scheme
  409. SCHEDULE 10 Competition test for exercise of bus functions
  410. SCHEDULE 11 Minor and consequential amendments about local transport
  411. SCHEDULE 12 Road user charging and workplace parking levy: financial provisions
  412. SCHEDULE 13 Amendments of Schedules 23 and 24 to Greater London Authority Act
  413. SCHEDULE 16 Transfer to SRA of Franchising Director’s functions
  414. SCHEDULE 17 Transfers to SRA from the Office of Rail and Road
  415. SCHEDULE 18 Transfer to SRA of BR’s functions relating to transport police
  416. SCHEDULE 19 Transfer to SRA of BR’s property etc
  417. SCHEDULE 20 SRA bye-laws
  418. SCHEDULE 21 Transfer schemes by SRA
  419. SCHEDULE 22 Renaming of rail users’ consultative committees
  420. SCHEDULE 23 Finances and procedures of rail users’ consultative committees
  421. SCHEDULE 24 Review of access charges by Regulator
  422. SCHEDULE 25 Transfer of BR’s property etc. to Secretary of State
  423. SCHEDULE 26 Transfers: tax
  424. SCHEDULE 27 Minor and consequential amendments about railways
  425. SCHEDULE 28 Transitionals and savings about railways
  426. SCHEDULE 29 Driver training and driving instructors: minor and consequential amendments
  427. SCHEDULE 30 Detention of vehicles used without operator’s licence
  428. SCHEDULE 31 Repeals and revocations

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428 provisions

Title and introductory text

Transport Act 2000 2000 c. 38 An Act to make provision about transport. [30th November 2000] Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

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1 Secretary of State’s general duty.

(1) The Secretary of State must exercise his functions under this Chapter 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 Secretary of State must exercise his functions under this Chapter in the manner he 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; (c) to secure that licence holders will not find it unduly difficult to finance activities authorised by their licences. (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 Secretary of State 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 Secretary of State must apply them in the manner he thinks is reasonable having regard to them as a whole. (6) The Secretary of State must exercise his functions under this Chapter so as to impose on licence holders the minimum restrictions which are consistent with the exercise of those functions. (7) This section does not apply to the exercise of the Secretary of State’s functions under section 38.

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2 CAA’s general duty.

(1) The CAA must exercise its functions under this Chapter 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 CAA must exercise its functions under this Chapter 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; (c) to secure that licence holders will not find it unduly difficult to finance activities authorised by their licences; (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); (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. (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 CAA 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 CAA must apply them in the manner it thinks is reasonable having regard to them as a whole. (6) The CAA must exercise its functions under this Chapter so as to impose on licence holders the minimum restrictions which are consistent with the exercise of those functions. (7) Section 4 of the Civil Aviation Act 1982 (CAA’s general objectives) does not apply in relation to the performance by the CAA of its functions under this Chapter.

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3 Restrictions on providing services.

(1) A person commits an offence if he provides air traffic services in respect of a managed area. (2) But subsection (1) is subject to subsections (3) to (5). (3) Subsection (1) does not apply if the person— (a) is authorised by an exemption to provide the services, or (b) acts as an employee or agent of a person who is authorised by an exemption to provide the services. (4) Subsection (1) does not apply if the person— (a) holds a licence authorising him to provide the services, or (b) acts as an employee or agent of a person who is authorised by a licence to provide the services. (5) Subsection (1) does not apply if the services are provided by the CAA in pursuance of directions under section 66(1). (6) For the purposes of this section— (a) air traffic services are to be treated as provided at the place from which they are provided; (b) air traffic services may be provided in respect of a managed area whether or not the aircraft concerned is in that area when they are provided. (7) A person who commits an offence under this section is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to a fine. (8) No proceedings may be started in England and Wales or Northern Ireland for an offence under this section except by or on behalf of— (a) the Secretary of State, or (b) the CAA acting with his consent.

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4 Exemptions.

(1) The Secretary of State may by order grant an exemption authorising the provision of air traffic services in respect of a managed area. (2) An exemption— (a) may be granted to a particular person or to persons of a specified description or to all persons; (b) may be granted in respect of air traffic services of one or more specified descriptions; (c) may be granted in respect of air traffic services provided in specified circumstances; (d) may be granted in respect of one or more specified areas (any of which may consist of all or part of a managed area); (e) may be granted subject to such conditions as may be specified. (3) An exemption granted to persons of a specified description must be published in such manner as the Secretary of State thinks appropriate for bringing it to the attention of persons of that description. (4) An exemption continues in force for the period specified in or determined by or under it, unless it previously ceases to have effect in accordance with its provisions.

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5 Licences: general.

(1) A licence may be granted to a company authorising it to provide air traffic services in respect of a managed area. (2) A licence— (a) may be granted in respect of air traffic services of one or more specified descriptions; (b) may be granted in respect of one or more specified areas (any of which may consist of all or part of a managed area). (3) A licence is not valid unless it is in writing. (4) A licence is not valid unless it is granted to a company ... that is limited by shares. (5) A licence continues in force for the period specified in it or determined by or under it, unless it previously ceases to have effect in accordance with its provisions. (6) A licence may not be transferred.

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6 Licences: grant.

(1) A licence may be granted by— (a) the Secretary of State after consulting the CAA, (b) the CAA with the consent of the Secretary of State, or (c) the CAA in accordance with a general authority given by the Secretary of State. (2) A general authority may be given on condition that the CAA complies with specified requirements (whether as to consulting the Secretary of State or obtaining his consent before granting a licence, as to the provisions to be included in a licence, or otherwise). (3) An application for a licence— (a) must be made in the prescribed manner; (b) must contain or be accompanied by prescribed information; (c) must be accompanied by the application fee (if any); (d) must, if the licence authority requires, be published by the applicant in the prescribed manner and within a period notified to it by the licence authority. (4) On an application the licence authority may grant or refuse the licence. (5) Before granting or refusing a licence the licence authority must— (a) publish a notice in such manner as the authority thinks appropriate for bringing it to the attention of persons likely to be affected by the grant or refusal, (b) serve a copy of the notice on the applicant, and (c) consider any representations made in accordance with the notice (and not withdrawn). (6) The notice must— (a) state either that the licence authority proposes to grant the licence or that it proposes to refuse it and (in either case) 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 grant or refusal. (7) As soon as practicable after granting a licence the grantor must send a copy— (a) to the CAA, if the grantor is the Secretary of State; (b) to the Secretary of State, if the grantor is the CAA. (8) The following requirements do not apply in relation to licences which need to be granted before the coming into force of section 3— (a) the requirement to consult imposed by subsection (1)(a); (b) the requirements imposed by subsection (3); (c) the requirements imposed by subsections (5) and (6). (9) The licence authority is the Secretary of State or the CAA (depending on the person to whom it falls to grant the licence). (10) The application fee is— (a) the prescribed fee, if the licence authority is the Secretary of State; (b) the charge determined under a scheme or regulations made under section 11 of the Civil Aviation Act 1982, if the licence authority is the CAA. (11) “Prescribed” means prescribed by regulations made by the Secretary of State.

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7 Licences: provisions.

(1) A licence may include such provisions as the licence authority thinks are necessary or expedient; and a provision need not relate to services authorised by the licence. (2) In particular, provision of the following kinds may be included— (a) provision requiring the licence holder to enter into an agreement for a purpose specified in the licence and provision for determining the terms of the agreement; (b) provision requiring the licence holder to comply with any requirements imposed at any time (by directions or otherwise) by a person with respect to any matter specified, or of a description specified, in the licence; (c) provision requiring the licence holder, except in so far as a person consents to its doing or not doing them, not to do or to do such things as may be specified, or of a description specified, in the licence; (d) provision requiring the licence holder to refer to a person for approval or determination such matters as may be specified, or of a description specified, in the licence. (3) A reference in subsection (2) to a person is to— (a) a person specified, or of a description specified, in the licence for the purpose concerned, or (b) if the licence so provides, a person nominated for the purpose concerned by a person falling within paragraph (a); and any of those persons may be the licence authority or some other person. (4) A licence may include provisions requiring a payment on its grant or payments during its currency (or both)— (a) of an amount or amounts specified in the licence or determined by or under it; (b) to a person or persons specified in the licence or determined by or under it. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Such provisions as the licence authority thinks fit may be expressed as conditions. (6A) A licence condition may include provision for its modification only if it specifies or describes— (a) the circumstances in which it may be modified, (b) the types of modification that may be made, and (c) the period or periods in which it may be modified. (6B) If a licence condition includes such a provision, it may be modified in accordance with that provision or in accordance with the provision made by this Chapter about modifying licence conditions. (6C) A term of a licence may be modified only in accordance with the provision made by this Chapter about modifying terms of a licence. (7) The licence authority is the Secretary of State or the CAA (depending on the person to whom it falls to grant the licence).

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8 Duties of licence holders.

(1) While a licence is in force its holder— (a) must secure that a safe system for the provision of authorised air traffic services in respect of a licensed area is provided, developed and maintained; (b) must take all reasonable steps to secure that the system is also efficient and co-ordinated; (c) must take all reasonable steps to secure that the demand for authorised air traffic services in respect of a licensed area is met; (d) must have regard, in providing, developing and maintaining the system, to the demands which are likely to be placed on it in the future. (2) A licensed area is an area in respect of which the licence authorises its holder to provide air traffic services. (3) Authorised services are services of the description specified in the licence as the description of services which the holder of the licence is authorised to provide. (4) For the purposes of subsection (1)(a) a system for the provision of services is safe if (and only if) in providing the services the person who provides them complies with such requirements as are imposed by Air Navigation Orders with regard to their provision. (5) An Air Navigation Order is an Order in Council under section 60 of the Civil Aviation Act 1982.

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9 Power to exclude services from effect of section 8.

(1) If a notice given by the CAA to a licence holder so provides, such air traffic services as are specified in the notice are to be treated as not being authorised services for the purposes of section 8 in its application to that holder. (2) A notice under subsection (1) may specify the air traffic services by reference to part of a licensed area. (3) A notice under this section may be modified or revoked by a further notice given by the CAA to the holder concerned.

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10 Breach of duties or conditions.

(1) No action is to lie in respect of a failure by a licence holder to perform— (a) a duty imposed by section 8; (b) a licence condition. (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 give a contravention notice; (c) the power to give an enforcement order or an urgent enforcement order, a duty to comply with the order and a power to bring proceedings in respect of the duty; (d) the power to impose a penalty under paragraph 9 or 10 of Schedule B1.

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11 Modification of a licence

(1) The CAA may modify a licence by modifying the licence conditions. (2) Subsection (1) is subject to section 11B. (3) The Secretary of State may modify a licence— (a) by modifying any term specifying the period for which the licence continues in force or any term by or under which that period is determined; (b) by modifying a prescribed term. (4) In this section “prescribed” means prescribed by regulations made by the Secretary of State.

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11A Modification of licence: procedure

(1) Before modifying a licence in reliance on section 11, the modifying authority must— (a) publish a notice in relation to the proposed modification; (b) send a copy of the notice to the persons listed in subsection (2); (c) consider any representations about the proposed modification that are made in the period specified in the notice (and not withdrawn). (2) The persons are— (a) the licence holder; (b) any owners or operators of aircraft, or any bodies representing them, that the modifying authority considers appropriate; (c) any owners or managers of aerodromes, or any bodies representing them, that the modifying authority considers appropriate; (d) any bodies representing users of air transport services that the modifying authority considers appropriate; (e) where the modifying authority is the CAA, the Secretary of State; (f) where the modifying authority is the Secretary of State, the CAA. (3) The notice under subsection (1) must— (a) state that the modifying authority proposes to modify the licence; (b) specify the proposed modification; (c) give the modifying authority's reasons for the proposed modification; (d) state the effect of the proposed modification; (e) specify a reasonable period for making representations. (4) If, after publishing the notice under subsection (1), the modifying authority decides not to make the modification in reliance on section 11, the modifying authority must— (a) publish a notice, giving its reasons; (b) send a copy of the notice to the persons listed in subsection (2). (5) If, after complying with subsections (1) to (3) in relation to a modification, the modifying authority decides to modify a licence in reliance on section 11, the modifying authority must— (a) publish a notice in relation to the modification; (b) send a copy of the notice to the persons listed in subsection (2). (6) The modifying authority is not to be treated as having complied with subsections (1) to (3) in relation to a modification of a licence if the modification differs significantly from the modification proposed in the notice under subsection (1). (7) The notice under subsection (5) must— (a) specify the modification; (b) specify the date from which the modification is to have effect (subject to paragraphs 6 to 8 of Schedule A1); (c) give the modifying authority's reasons for the modification; (d) state the effect of the modification; (e) state how it has taken account of any representations made in the period specified in the notice under subsection (1); (f) state the reasons for any differences between the modification and that set out in the notice under subsection (1). (8) The date specified under subsection (7)(b)— (a) in the case of a modification of a licence condition, must fall after the end of the period of 6 weeks beginning with the day on which the notice under subsection (5) was published (subject to paragraphs 6 to 8 of Schedule A1); (b) otherwise, must fall after the end of the period of 28 days beginning with that day. (9) In this section “modifying authority”— (a) in relation to a modification of a licence condition, means the CAA; (b) in relation to any other modification, means the Secretary of State.

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11B Restrictions on power to modify licence conditions

(1) The CAA must not make a proposed modification if, within the period specified under section 11A(3)(e), the Secretary of State directs it not to do so. (2) The CAA must— (a) publish a direction given to it under subsection (1); (b) send a copy of the direction to the persons listed in subsection (3). (3) The persons are— (a) the licence holder; (b) any owners or operators of aircraft, or any bodies representing them, that the CAA considers appropriate; (c) any owners or managers of aerodromes, or any bodies representing them, that the CAA considers appropriate; (d) any bodies representing users of air transport services that the CAA considers appropriate.

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12 References to Competition and Markets Authority.

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12A References under section 12: time limits

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12B References under section 12: application of Enterprise Act 2002

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13 Reports on references.

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14 Modification following report.

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15 CMA's power to give direction.

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16 Position where CMA gives direction.

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17 CMA's duty as to modifications under section 16.

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18 Sections 15 and 16: general.

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19 Modification by order under other enactments.

(1) Where the CMA or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of the licence conditions to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order. (2) In subsection (1) above “relevant order” means— (a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the 2002 Act where— (i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the provision of air traffic services; or (ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the provision of air traffic services; or (b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market or markets in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to the provision of air traffic services. (5) As soon as practicable after making modifications under this section the relevant authority must send a copy of them to the licence holder and a copy to the CAA. (6) Expressions used in subsection (2) above and in Part 3 or (as the case may be) Part 4 of the 2002 Act have the same meanings in that subsection as in that Part. (7) The 2002 Act is the Enterprise Act 2002.

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19A Appeal to Competition and Markets Authority

(1) An appeal lies to the CMA against a decision by the CAA to modify a licence condition under section 11(1). (2) An appeal may be brought under this section only by— (a) the licence holder, (b) an owner or operator of an aircraft whose interests are materially affected by the decision, or (c) an owner or manager of a prescribed aerodrome whose interests are materially affected by the decision. (3) “Prescribed aerodrome” means an aerodrome of a description prescribed by regulations made by the Secretary of State. (4) An appeal may be brought under this section only with the permission of the CMA. (5) An application for permission to appeal under this section may be made only by a person who, if permission is granted, will be entitled to bring the appeal. (6) The CMA may refuse permission to appeal under this section only on one of the following grounds— (a) that the appeal is brought for reasons that are trivial or vexatious; (b) that the appeal does not have a reasonable prospect of success; (c) that subsection (7) is satisfied. (7) This subsection is satisfied if the appeal is brought— (a) against a decision that relates entirely to a matter remitted to the CAA following an earlier appeal under this section, and (b) on grounds that were considered, or could have been raised by the current applicant or a relevant connected person, as part of the earlier appeal. (8) In subsection (7) “relevant connected person”, in relation to an applicant, means a person who was connected to the applicant at any time during the consideration of the earlier appeal by the CMA.

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19B When appeals may be allowed

The CMA may allow an appeal under section 19A only to the extent that it is satisfied that the decision appealed against was wrong on one or more of the following grounds— (a) that the decision was based on an error of fact; (b) that the decision was wrong in law; (c) that an error was made in the exercise of a discretion.

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19C Determination of appeal

(1) Where it does not allow an appeal under section 19A, the CMA must confirm the decision appealed against. (2) Where it allows an appeal under section 19A, the CMA must do one or more of the following— (a) quash the decision appealed against; (b) remit the matter that is the subject of the decision appealed against to the CAA for reconsideration and decision in accordance with this Chapter and any directions given by the CMA; (c) substitute its own decision for that of the CAA. (3) Where it allows only part of an appeal under section 19A— (a) subsection (2) applies in relation to the part of the decision appealed against in respect of which the appeal is allowed, and (b) subsection (1) applies in respect of the rest of that decision. (4) Where the CMA substitutes its own decision for that of the CAA, the CMA may give directions to— (a) the CAA, and (b) the licence holder. (5) The CMA must not give a direction under this section that requires a person to do anything that the person would not have the power to do apart from the direction. (6) A direction given by the CMA under this section to a person other than the CAA is enforceable— (a) in England and Wales and Northern Ireland, as if it were an order of the High Court; (b) in Scotland, as if it were an order of the Court of Session.

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19D Determination of appeal: time limits

(1) The CMA must determine an appeal under section 19A within the period of 24 weeks beginning with the day on which the CAA published, in accordance with section 11A, the notice of the decision that is the subject of the appeal. This is subject to subsections (2) to (5). (2) The CMA may extend the appeal period by not more than 12 weeks if satisfied that there are good reasons for doing so. (3) The CMA may extend the appeal period only once in reliance on subsection (2). (4) The CMA may extend the appeal period by any period that it considers appropriate if— (a) there is an appeal to the Competition Appeal Tribunal under this Chapter which the CMA considers may be relevant to the appeal under section 19A, and (b) the appeal to the Tribunal has not been determined or withdrawn. (5) The CMA may extend the appeal period more than once in reliance on subsection (4). (6) If the CMA extends the appeal period it must— (a) publish a notice stating the new time limit for determining the appeal; (b) send a copy of the notice to the persons listed in subsection (7). (7) Those persons are— (a) the holder of the licence that is the subject of the appeal; (b) if the appeal was brought by someone other than the licence holder, the appellant; (c) any other person with a qualifying interest in the decision that is the subject of the appeal (see paragraph 27(3) of Schedule A1); (d) any owners or operators of aircraft that the CMA considers appropriate; (e) any owners or managers of prescribed aerodromes (within the meaning given in section 19A(3)) that the CMA considers appropriate; (f) the CAA. (8) The Secretary of State may by regulations modify the periods of time specified in this section. (9) In this section “appeal period”, in relation to an appeal under section 19A, means the period allowed for determining the appeal.

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19E Determination of appeal: publication etc

(1) A determination made by the CMA on an appeal under section 19A— (a) must be contained in an order made by the CMA, and (b) takes effect at the time specified in the order or determined in accordance with the order. (2) The order must set out the reasons for the determination. (3) The CMA must— (a) publish the order as soon as practicable after the determination is made; (b) send a copy of the order to the persons listed in subsection (4). (4) Those persons are— (a) the holder of the licence that is the subject of the appeal; (b) if the appeal is brought by a person other than the licence holder, the appellant; (c) any other person with a qualifying interest in the decision that is the subject of the appeal (see paragraph 27(3) of Schedule A1); (d) any owners or operators of aircraft that the CMA considers appropriate; (e) any owners or managers of prescribed aerodromes (within the meaning given in section 19A(3)) that the CMA considers appropriate; (f) the CAA. (5) The CMA may exclude from publication under subsection (3) any information that it is satisfied is— (a) commercial information the disclosure of which would or might, in the opinion of the CMA, significantly harm the legitimate business interests of an undertaking to which it relates, or (b) information relating to the private affairs of an individual the disclosure of which would or might, in the opinion of the CMA, significantly harm the individual's interests. (6) The CAA must take any steps that it considers necessary for it to comply with the order. (7) The steps must be taken— (a) if a time is specified in the order or is to be determined in accordance with the order, within that time; (b) otherwise, within a reasonable time.

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19F Procedure on appeals

(1) Schedule A1 makes further provision in respect of appeals under section 19A. (2) In carrying out the functions listed in subsection (3), the CMA must have regard to the matters in respect of which duties are imposed on the CAA by section 2. (3) Those functions are— (a) deciding an application for permission to appeal under section 19A; (b) deciding an application under Schedule A1 for permission to intervene in an appeal; (c) determining an appeal under section 19A, including taking decisions and giving directions described in section 19C. (4) Except where Schedule A1 provides otherwise, the functions of the CMA with respect to an appeal under section 19A are to be carried out on behalf of the CMA by a group constituted for the purpose, by the chair of the CMA, under Schedule 4 to the Enterprise and Regulatory Reform Act 2013.

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20 Enforcement

Schedule B1 makes provision for— (a) the enforcement of the duties imposed by section 8 and licence conditions, and (b) connected appeals.

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21 Exceptions.

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22 Procedural requirements.

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23 Validity of orders.

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24 Effect of orders.

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25 Power to obtain information

Schedule C1 makes provision— (a) to enable the CAA to obtain information for the purposes of carrying out its functions under section 34 and Schedule B1, (b) for enforcement in connection with the exercise of those powers, and (c) for connected appeals.

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25A Imposing penalties

(1) The CAA may not impose a penalty on a person under paragraph 9 or 10 of Schedule B1 or paragraph 2, 3 or 4 of Schedule C1 for an act or omission if it has imposed a penalty on the person under one of those provisions in respect of the same act or omission. (2) Subsection (1) does not prevent the CAA imposing more than one penalty on a person in respect of acts or omissions that take place at different times or over different periods.

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25B Recovering penalties

(1) This section applies if all or part of a penalty imposed on a person under this Chapter is not paid within the period specified in the notice given in respect of the penalty under paragraph 12 of Schedule B1 or paragraph 6 of Schedule C1. (2) The unpaid balance carries interest from time to time at the rate for the time being specified in section 17 of the Judgments Act 1838. (3) The CAA may recover from any person as a debt due to the CAA— (a) the unpaid balance, and (b) any interest on the penalty that has not been paid. (4) Any sums received by the CAA by way of a penalty or interest under this Chapter must be paid into the Consolidated Fund.

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25C Statement of policy on penalties

(1) The CAA must prepare and publish a statement of its policy with respect to— (a) imposing penalties under this Chapter, and (b) determining their amount. (2) The CAA may revise the statement of policy and, if it does so, it must publish the revised statement. (3) When imposing a penalty under this Chapter, or determining the amount of such a penalty, the CAA must have regard to the last statement of policy published before the act or omission in respect of which the penalty is to be imposed. (4) When preparing or revising a statement, the CAA must consult any persons that it considers appropriate.

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26 Protection of licence companies etc.

(1) No licence company may be wound up voluntarily. (2) No application may be made to a court for an administration order under Part II of the 1986 Act in relation to a licence company, and— (a) anything purporting to be such an application is of no effect; (b) no administration order may be made under that Part in relation to a licence company. (3) No step may be taken by a person to enforce any security over the property of a licence company unless the person has given to the Secretary of State and the CAA at least 14 days’ notice of his intention to take the step. (4) No application for the winding up of a licence company may be made by a person other than the Secretary of State unless the person has given to the Secretary of State and the CAA at least 14 days’ notice of his intention to make the application. (5) In subsection (3) “security” and “property” have the same meanings as in Parts I to VII of the 1986 Act. (6) In this section and sections 27 to 30— (a) references to a licence company are to a company which holds a licence; (b) references to the 1986 Act are to the Insolvency Act 1986.

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