Britain's airports regulator, the Civil Aviation Authority (CAA), said on Tuesday efficiency and the flow of information to airlines about plans for the site could be improved at London's Stansted Airport.
The CAA's criticism of Stansted owner BAA was in tune with a report last week by the Competition Commission.
In that report, the Commission put the wheels in motion for a break-up of the monopoly enjoyed by BAA, which is owned by Spain's Ferrovial, at seven key UK airports.
The CAA has referred Stansted to the Competition Commission. The CAA will then set limits on how much airlines can be charged to use it from April 2009.
Its report said analysis of Stansted's operating costs had found scope for its under-fire owner -- which also operates Heathrow and Gatwick -- to run it with greater efficiency, while BAA could have put across its investment plans more clearly to airlines.
BAA said it would consider the CAA document but hoped the new pricing regime would reflect its planned investment in new capacity at the airport.
"Over the next five years, BAA is prepared to invest GBP1.4 billion pounds (USD$2.78 billion) at Stansted (calculated against the current pricing regime), improving the airport's fabric and facilities," it said in a statement.
The CAA said it had asked BAA to justify the commercial case for expansion plans at the airport.
It laid out six types of Stansted price-caps for the Competition Commission to consider, but director of economic regulation Harry Bush said the final ruling would depend on how much competition was seen to exist between Stansted and nearby airports.
"The key is the level of competition people think is there now, and what will develop in future," he said, adding he believed Stansted competed effectively with Luton and East Midlands airports.
The Commission will report back within six months.
Price-caps are put in place so airlines with no choice over which airport to use are not put at the mercy of the operator in the shape of high fees.
The CAA had recommended the Stansted caps be completely lifted due to its view on the competitive nature of the airport, but the government ruled against such a move earlier this year.
Bush agreed with the Commission there was no competition between Stansted, Heathrow and Gatwick, but said there could be under separate owners.
"Currently there is (only) interaction, with the potential for competition (under) separate owners," he said.
The regulatory regime under the CAA is also up for review by the government, which Bush said he welcomed.
