One way this cost recovery issue may play out is that - the CAA stick largely to their guns; less pilots, engineers, instructors and organisations apply for or renew their approvals; so less activity across the industry results.
From an hazily remembered economics lesson, isn't this the Law of Diminishing Returns?
As the CAA is controlled from above on pricing, and don't forget it was British Airways and others complaining to the last review about cross subsidy that lies at the root of the hyper increases for GA, their ability to price to the market is limited.
If flying training falls out of licensing requirements for aerodromes, if new starters for PPL and CPL training don't pick up and the N reg issue isn't resolved then increased income will have to come from Pax revenues. As all economic indicators show nothing like the once forecast doubling of mppa by 20 whatever and the likely drift to rail for more and more domestic trips, there's no gold rush here to swell the CAA's coffers.
A bleak outlook made even bleaker when one looks at EASA's ideas of pricing.
Sir George Cayley