The Civil Aviation Authority (CAA) is starting a consultation into the potential of deregulating Stansted.

CAA believes recent deals have changed the airport's market power, which may benefit from deregulation. In September, the hub's owners Manchester Airport Groups agreed to reduce the fees imposed on Ryanair for more flights.

A similar agreement occurred in June to see easyJet provide over double its current traffic to Stansted in the next five years.

Group director of regulatory policy at CAA Iain Osbourne said: "Our aim is to protect passengers, so we will act if the market fails. But regulation must achieve more benefits for consumers than it costs."

Stansted has also been in the news lately as part of the discussions to improve capacity in London as one of the options is to provide a second runway at the facility The Airports Commission recently rejected a request for a judicial review from Stop Stansted Expansion.