Hotel tycoon unveils rival Heathrow expansion plan with shorter third runway
Building a 2,800-metre third runway instead of the full-length 3,500-metre runway planned by the airport would result in 'reduced risk' and avoid 'spiralling cost', the company said.
A shorter runway could have limits on its use, although Arora Group insisted it would be able to accommodate aircraft of all sizes.
Arora Group's Heathrow West proposal states the new runway could be fully operational by 2035, while a new terminal would open in two phases, in 2036 and 2040.
The plan, developed with infrastructure company Bechtel, has a cost estimate of under £25 billion, not including the redevelopment of the airport's existing central area.
Mr Arora, who is one of the largest landowners at Heathrow, said: 'After a decade working with our world-leading design and delivery team, I am very proud that the Arora Group can finally unveil to the UK Government our Heathrow West proposal, which directly meets and supports the United Kingdom's primary objective of unlocking economic growth at the UK's only hub airport, with a strong commitment of doing so on-budget and on-time.
'The Arora Group has a proven track record of delivering on-time and on-budget projects including in and around Heathrow airport.
'We are delighted that the Government has taken a common-sense approach to invite proposals from all interested parties for the very first time rather than granting exclusivity to the current airport operator, no matter its track record.'
Mr Arora has repeatedly accused the airport of wasting money.
In December 2024, French company Ardian completed a deal to become Heathrow's largest shareholder with a 23% stake, while Saudi Arabia's sovereign wealth fund purchased a 15% share.
Chancellor Rachel Reeves gave her backing for a third runway in a speech on growth in January.
Heathrow will submit its own expansion plan to the Government on Thursday.
Transport Secretary Heidi Alexander will then review the Airports National Policy Statement, which provides the basis for decision-making on any Development Consent Order application.
Heathrow is understood to be open to a discussion with airlines about building a shorter runway if it can deliver the same benefits.
The airport declined to comment on the Arora Group's proposal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
8 minutes ago
- Daily Mail
Property market 'strongest in three years' in first half of 2025
The nation's property market was the strongest it has been since 2022 in the first half of this year, fresh analysis shows. Property transactions and mortgage approvals hit a three-year high in the first half of the year, analysis by estate agent comparison website GetAgent reveals. The figures were boosted by a hike in stamp duty in April, which led property buyers to rush to complete before the deadline. However, GetAgent said the numbers of new mortgages approved had 'remained consistently strong' after that, 'suggesting plenty of buyer appetite to drive transactions through the remainder of the year'. This was in part because of mortgage lenders loosening their affordability rules, a change which has benefited first-time buyers. An average of 63,866 mortgages were approved each month between January and June, its analysis of HM Revenue and Customs and Bank of England data showed. In addition, 103,917 property transactions completed each month between January and June, which GetAgent said was the strongest level of activity seen in the property market since 2022. This fell towards the end of the period, with 93,530 transactions completed in June according to HMRC. Colby Short, chief executive of GetAgent, said: 'It's clear many remain confident in the market, with about half of the introductions we facilitate proceeding to list within six months.' Buyers had been enjoying reduced stamp duty bills since 2022 but the tax-free allowances and rates reverted on April 1 as Chancellor Rachel Reeves failed to extend the tax holiday in her inaugural Budget. The so-called 'nil-rate threshold' – at which stamp duty starts to be charged – were lowered from £250,000 to £125,000. First-time buyers could previously buy a £425,000 property without paying stamp duty but this has been lowered to £300,000. Justin Moy, of Essex-based mortgage brokers, said: 'Much of the increased activity would have been driven by the desire to buy before the stamp duty changes in April, with both first time buyers and homemakers looking to cash in before their cost to move increased substantially. 'Whilst activity has calmed down over the last few months, we are starting to see renewed enquiries fuelled by improved mortgage lender affordability.' Mortgage affordability boost A handful of major lenders have relaxed their mortgage affordability rules in recent months, which means homebuyers can now potentially borrow tens of thousands of pounds more. HSBC's relaxation of affordability rules, for example, means the average first time buyer will be able to borrow some £39,000 more. Moy also said mortgage rates are reasonably settled for the rest of the year, so anyone holding out for a better deal will start to make moves, which will spark a steady uptick in mortgage approvals and sales over the coming months. The average two-year fixed-rate deal was 5 per cent on 8 August, while an average five-year deal was 5.01 per cent, according to rate scrutineer Moneyfacts. This comes as house prices in July had their biggest monthly rise of the year so far, according to Halifax, as mortgage rates keep falling and banks offer bigger home loans. The mortgage lender said the average price went up by 0.4 per cent in the month of July, making the typical home worth £298,237. This is compared to £297,157 in June. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Leader Live
11 minutes ago
- Leader Live
Peace in Northern Ireland to inspire high-level summit on Western Balkans
Foreign Secretary David Lammy will host 15 European ministers at Hillsborough Castle for talks as the region faces growing threats from instability, corruption and criminal gangs which also compromise UK security. The local legacy of peace-building will be drawn on to champion diplomacy and reconciliation among Western Balkans countries. The castle previously played host to vital moments in UK and Irish politics, including intense negotiations which salvaged peace talks from the brink of collapse, forging the way for the Belfast/Good Friday Agreement in 1998. Mr Lammy said Hillsborough Castle was a poignant reminder of the power of diplomacy to transform conflict and division into long-term peace and co-operation. 'By harnessing Northern Ireland's experience, we hope to support partners in the Western Balkans to overcome the challenges of the past through meaningful reconciliation and help build a safe and prosperous future,' he said. 'As part of the plan for change, this Government is committed to strengthening partnerships with Europe, ensuring strong foundations of economic stability, secure borders and national security.' Secretary of State for Northern Ireland Hilary Benn said the region was a legacy of hope. 'Northern Ireland's experience of securing peace through the Good Friday Agreement after decades of conflict has set a powerful example of reconciliation to the world,' he said. 'This provides a legacy of hope as well as practical experience which I believe will prove invaluable to our Western Balkans partners as they travel a similar path to peace and prosperity. 'As a long-standing forum for peace-building and politics, it is fitting that Hillsborough Castle has been chosen to host this significant international event.' Laura McCorry, head of Hillsborough Castle, added: 'For centuries, Hillsborough Castle has been a place where people come together to shape a shared future. 'The castle stands as a living testament to the power of dialogue and reconciliation in a place where peace has been hard won. 'We hope it will provide an inspiring setting for the meeting and look forward to hosting the ministers this autumn.' The summit will take place while the UK continues a role in security in Kosovo where it has maintained a presence through Nato's KFOR mission since 1999. Since the election last year, the UK has stepped up engagement with Western Balkans countries to deliver on the plan for change, including breaking people smuggling networks exploiting the region as a gateway to Europe. According to the Government, during 2024 alone, more than 55,000 people were trafficked to other countries along routes through the Western Balkans. A joint agreement on organised immigration crime was signed with Serbia during Mr Lammy's visit to the region in April, when he also visited Kosovo. The Foreign Secretary also visited Bosnia and Herzegovina in May amid political instability in the country, part of the UK's increased activity and engagement in the Western Balkans.
South Wales Guardian
11 minutes ago
- South Wales Guardian
Peace in Northern Ireland to inspire high-level summit on Western Balkans
Foreign Secretary David Lammy will host 15 European ministers at Hillsborough Castle for talks as the region faces growing threats from instability, corruption and criminal gangs which also compromise UK security. The local legacy of peace-building will be drawn on to champion diplomacy and reconciliation among Western Balkans countries. The castle previously played host to vital moments in UK and Irish politics, including intense negotiations which salvaged peace talks from the brink of collapse, forging the way for the Belfast/Good Friday Agreement in 1998. Mr Lammy said Hillsborough Castle was a poignant reminder of the power of diplomacy to transform conflict and division into long-term peace and co-operation. 'By harnessing Northern Ireland's experience, we hope to support partners in the Western Balkans to overcome the challenges of the past through meaningful reconciliation and help build a safe and prosperous future,' he said. 'As part of the plan for change, this Government is committed to strengthening partnerships with Europe, ensuring strong foundations of economic stability, secure borders and national security.' Secretary of State for Northern Ireland Hilary Benn said the region was a legacy of hope. 'Northern Ireland's experience of securing peace through the Good Friday Agreement after decades of conflict has set a powerful example of reconciliation to the world,' he said. 'This provides a legacy of hope as well as practical experience which I believe will prove invaluable to our Western Balkans partners as they travel a similar path to peace and prosperity. 'As a long-standing forum for peace-building and politics, it is fitting that Hillsborough Castle has been chosen to host this significant international event.' Laura McCorry, head of Hillsborough Castle, added: 'For centuries, Hillsborough Castle has been a place where people come together to shape a shared future. 'The castle stands as a living testament to the power of dialogue and reconciliation in a place where peace has been hard won. 'We hope it will provide an inspiring setting for the meeting and look forward to hosting the ministers this autumn.' The summit will take place while the UK continues a role in security in Kosovo where it has maintained a presence through Nato's KFOR mission since 1999. Since the election last year, the UK has stepped up engagement with Western Balkans countries to deliver on the plan for change, including breaking people smuggling networks exploiting the region as a gateway to Europe. According to the Government, during 2024 alone, more than 55,000 people were trafficked to other countries along routes through the Western Balkans. A joint agreement on organised immigration crime was signed with Serbia during Mr Lammy's visit to the region in April, when he also visited Kosovo. The Foreign Secretary also visited Bosnia and Herzegovina in May amid political instability in the country, part of the UK's increased activity and engagement in the Western Balkans.
