Airlines voice significant concerns about Heathrow third runway amid ‘service issues'

Independent

20-03-2025

Airlines have voiced significant concerns about Heathrow's proposed third runway, questioning its effectiveness given the airport's current operational model.
A recent survey of 50 airlines operating at the west London airport revealed that 90 per cent believe Heathrow 's functionality as a hub is being hampered.
Among the key issues raised were the standard of services provided and a perceived lack of engagement with airlines.
Heathrow's Airline Operators Committee (AOC), representing the airport's airlines and the body that commissioned the research, argues that these shortcomings render a third runway "unaffordable" under the existing system.
Heathrow, in response, acknowledged the need for "adjustments to the regulatory model," while maintaining that both airlines and passengers currently "get good value for money."
More than two out of three (67 per cent) airlines agreed that the airport's operation stifles their ability to increase investment.
Some 60 per cent of respondents believe Heathrow's service levels inside terminals is worse than at other major airports, with claims of long security lines, baggage system failures and poor treatment of passengers with restricted mobility.
Chancellor Rachel Reeves gave her backing for Heathrow's third runway project in a speech on growth in January.
The airport responded by saying it would submit detailed plans to the Government in the summer.
The cost of the project was estimated at £14 billion in 2014, but this is likely to have risen sharply.
Heathrow's AOC is part of the Heathrow Reimagined campaign, which is calling on the Civil Aviation Authority (CAA) to reform how the airport is regulated.
Among the other organisations represented by the body are British Airways' owner International Airlines Group (IAG), Virgin Atlantic and tycoon Surinder Arora, who operates a number of hotels serving the airport.
The campaign claims Heathrow is the world's most expensive airport for charges, with airlines paying £1.1 billion more each year than if fees were in line with equivalent major European airports.
Airlines typically pass charges on to passengers through fares.
Nigel Wicking, chief executive of Heathrow's AOC, told the PA news agency the results of the survey reflect 'the performance challenges airlines have day to day at Heathrow'.
He said: 'When you when you look at that relative to the amount we spend at Heathrow, something's going wrong.
'We're spending a lot of money, it is the most expensive airport for charges, and yet the quality of service keeps on dropping, whether that's loss of bags, congestion or lack of availability of check-in space.'
He said New York's JFK airport offers a 'far better experience' because it has refreshed all its terminals within a 27-year period, whereas at Heathrow, Terminal 3 is more than 60 years old and Terminal 4 is nearly 40 years old.
The regulatory asset base (Rab) model used at Heathrow allows it to charge fees to airlines based on infrastructure improvement plans agreed with the CAA and permitted rates of return for investors.
Mr Wicking said: 'They've realised what they're sitting on in terms of the asset that is Heathrow, and with the regulatory model they've worked out how to make really good money.
'If they can get money onto the Rab – if they get capital spend – they will have a really good return on that capital spend, which is obviously very attractive to their shareholders but it doesn't drive efficiency.
'Whenever I see an another capital plan coming across my table for Heathrow to invest in, I just look to the skies and think 'where do you get these numbers from' because some of them are absolutely ludicrous.'
He added: 'The (airlines) do want expansion but it cannot be at any price.
'The current price is already too much.
'If you extrapolate that to the kind of spend we're talking about for a third runway and terminals, it would just make it unaffordable.'
Heathrow reported pre-tax profits of £917 million for 2024, up 31 per cent from £701 million in 2023.
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 per cent share.
Mr Arora claimed Heathrow bosses 'take advantage of the monopoly' position as the UK's only major hub airport.
He gave examples – disputed by Heathrow – of the airport charging airlines £76,000 to remove three trees, spending £1.1 million on a smoking shelter at Terminal 4, and charging more than half a million each for two disabled toilets.
He said: 'We are 110 per cent behind the Chancellor and the Government for expansion, for growth, except just a couple of caveats.
'We must do it for the right reasons, and we must do it for the benefit of the nation, and not for the benefit of lining the shareholders' pockets.
'We must make sure that we get value for money.'
A spokesperson for Heathrow said: 'Every penny invested in infrastructure at Heathrow is approved by airlines and our regulator.
'We agree adjustments to the regulatory model are needed to deliver a third runway, but airlines and passengers get good value for money at Heathrow.
'Our operational performance is good and improving, and the value we provide to airlines and passengers is easily seen by how many airlines want to include Heathrow in their network.
'Expanding Heathrow will drive a further step change and address many of the challenges identified with operating an airport that is already at full capacity.'
Heathrow recorded a 6 per cent rise in the number of passengers travelling through its four terminals last year, to 83.9 million.