Measures, Targets and Incentives (MTI)

The Measures, Targets and Incentives (MTI) Scheme was introduced by the CAA in May 2023, as part of H7 and shares many elements with the previous service quality scheme (the Service Quality Rebates and Bonuses scheme) implemented in Q6. The MTI scheme forms part of Heathrow’s Licence described in sections D1 and Schedule 1 and represents a step towards measuring the consumer outcomes set out in the CAA’s Outcomes Based Regulation (OBR) framework: 

• An airport I want to travel from that offers me a good value choice of flights;
• I am confident I can get to and from the airport;
• I have a predictable and reliable journey;
• I feel comfortable and secure at the airport; 
• I have an enjoyable experience at the airport; and 
• I feel cared for and supported.

The MTI Scheme specifies the service standards that passengers and airlines can expect from Heathrow in return for the regulatory charges they pay. As part of the MTI scheme, for the months where performance on a measure falls below its target, Heathrow must repay a proportion of charges levied back to the airlines. 

Key features of the MTI scheme are:

• It provides an incentive to the airport to meet set standards of service quality in areas which are important to passengers and airlines
• The measures are subject to either financial incentives, or reputational incentives
• Rebate payments are made monthly to airlines where performance on measures with financial incentives has not met the target
• The maximum amount of rebates that could be paid is 7% of airport charges
• Rebates are paid on performance against an individual terminal targets apart from control posts, where any rebate is paid to the whole airline community, and the runway operational resilience which is calculated and paid for the airfield as a whole. 

The scheme also includes a bonus element on passenger satisfaction measures to reward high performance that benefits passengers. The maximum additional revenue achievable via bonuses at Heathrow is 1.44 % of airport charges. 

The following reports show MTI performance for all terminals and include runway operational resilience and control post queuing. 

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