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Metro
01-08-2025
- Business
- Metro
Inside Heathrow's latest £49,000,000,000 plan for third runway and terminals
The race for the controversial Heathrow expansion has geared up after two rival plans are now on the table. First up were plans by billionaire businessman Surinder Arora's company, the Arora Group, which revealed cheaper plans with a shorter new runway. Now Heathrow has submitted its plan for the third runway, which would be full length and take a chunk out of the M25 nearby. Heathrow has said its plan is 'shovel-ready' and flights could take off within a decade. The new runway could add 276,000 more flights each year, increasing the number from 480,000 to 756,000 annually. The expansion would create at least 30 new daily routes and serve up to 150 million passengers, Heathrow said. Here is a breakdown of the £49 billion price tag. £21 billion -Used to build the new, full-length, 11,482ft runway north-west of the current airport, and to divert part of the M25 into a tunnel -Used to build the new, full-length, 11,482ft runway north-west of the current airport, and to divert part of the M25 into a tunnel £12 billion – This will fund the new terminal complex called T5X to allow the increased passenger numbers, baggage handling, airside and landside operations, car parks and transport connections – This will fund the new terminal complex called T5X to allow the increased passenger numbers, baggage handling, airside and landside operations, car parks and transport connections £15 billion – The current airport buildings and services will be upgraded at Terminal 2, including two satellite piers, while the old Terminal 3 and Terminal 1 will be demolished The third runway will swallow up parts of Harmondsworth in Hillingdon north of the airport, an area dotted with hundreds of homes, a primary school, pubs and a moor. Part of the M25 will be diverted into a tunnel to cut underneath the runway. Many locals are against the expansion as homes and businesses near the airport's safety perimeter face demolition, with up to 700 buildings at risk. The UK's busiest airport has been driving for the expansion for years as bosses have argued that Heathrow's capacity is full. Heathrow's CEO, Thomas Woldbye, said operating at capacity at the moment is 'to the detriment of trade and connectivity.' He said: 'With a green light from government and the correct policy support underpinned by a fit-for-purpose, regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country.' The Chancellor said the move will help boost UK economic growth, but campaigners have said the expansion will result in more aircraft noise and pollution, and groups have been up in arms about the expansion idea since it wa first introduced in 2009. Greenpeace UK said the expansion will support a small number of flyers while 'the rest of us have to live with the consequences of their disproportionate polluting.' Justine Bayley, the chair of Stop Heathrow Expansion and a local resident, told Metro that the government failed to give any of the 'downsides,' adding that the Chancellor gave 'fairly meaningless assurances that all environmental aspects will be met.' She said she has seen 'all sort of threats coming and going' during her 30 years of living in the village and that the residents would continue their fight against the expansion. Ms Bayley said the country has 'managed a fair bit of growth without the additional runway.' 'It is not a magic wand for growth,' she said. Heathrow is one of the world's busiest airports as planes take off or land up to every 45 seconds across the two existing runways. It is set to see 84.2 million passengers pass through its terminals this year – an increase of 0.4% from the 83.9 million last year. Two existing runways have capacity for around 475,000 flights. The new runway would raise the capacity to around 740,000 flights. Around one-third of the UK's long-haul flights go through Heathrow, Chancellor Reeves said. She said the expansion could create more than 100,000 jobs. Alongside long-haul routes, the new runway would serve flights to domestic locations like Belfast International, Liverpool, Prestwick and Durham Tees Valley. However, easyJet, which doesn't currently serve Heathrow, said the expansion is a 'unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for consumers.' Colne Valley Regional Park said it is 'fiercely opposed' to the expansion, claiming that it would result in the 'unprecedented environmental destruction' and loss of swathes of the park located near northwest of the airport. The group said that five rivers would need to be diverted along with the M25 and local road changes. Independent advisers on the Government's Climate Change Committee recommend there should be 'no net airport expansion across the UK.' The UK is committed to reaching net zero for CO2 emissions by 2050. Chancellor Reeves has argued that growth does not need to mean compromising the net zero target, saying that the Heathrow expansion is 'badly needed.' The expansion has caused division in the government, with Ed Miliband spending years campaigning against the project before he made a U-turn and backed the proposal. The Mayor of London Sadiq Khan has been clear about it opposition to the expansion due to the 'severe impact it will have in terms of noise, air pollution and meeting our climate change targets.' It will take years before the third runway and new terminals are operational as the planning process will take up to two years before anything can be built. More Trending The third Heathrow runway is not expected to open until the 2030s. Next, the government will consider both Heathrow Airport's and Arora Group's plans before formal planning consent is given. This article was first published on January 29. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Jockeys send desperate messages after their plane's engine failed MORE: Protesters surround Epping council office demanding migrant hotel close down MORE: KöD's signature three-course menu for only £39.50: 10 unmissable Time Out deals
The Independent
01-08-2025
- Business
- The Independent
Heathrow third runway: Simon Calder tackles the key issues facing airport expansion plans
London Heathrow has revealed its latest plans for adding a third runway and building new terminals. Britain's busiest airport could have extra capacity within a decade, allowing new entrants such as easyJet to set up bases. But the cost – £21bn for the runway, plus £12bn for new terminal and stand capacity – has alarmed airlines, who fear passengers will be paying in advance for something that won't benefit them. The hotelier and property tycoon Surinder Arora has set out his plans for a cheaper and shorter runway, while another proposal for a 'London City'-length runway has also been tabled. Environmentalists argue that any expansion would be a disaster, while history suggests that having a third runway by 2035 is unlikely. Simon Calder has been covering the airport expansion debate for decades. What's the problem with Heathrow's third runway? London is the world capital of aviation, with far more people flying in and out than any other city on the planet. While it has six airports (if you count plucky Southend), the two biggest are close to capacity. Heathrow, west of the capital, is the busiest two-runway airport in the world; Gatwick, south of London, is the world's busiest single-runway airport. Heathrow airport handled 83.9 million passengers in 2024 and is operating very close to its annual limit of 480,000 take-offs and landings. At peak times there is a landing and a take-off every 80 seconds. Many inbound aircraft fly holding patterns before being cleared to land, increasing journey times, noise, fuel consumption and emissions. In bad weather, dozens of flights are cancelled as the air traffic control 'flow rate' is reduced. Heathrow's chief executive, Thomas Woldbye, says: 'It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity. 'With a green light from government and the correct policy support underpinned by a fit-for-purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country. We are uniquely placed to do this for the country; it is time to clear the way for take-off.' What is Heathrow proposing? A 'shovel-ready' plan for a '100 per cent privately-financed third runway, capable of flights taking off within a decade'. As recommended by the 2015 Davies Commission and approved by parliament, the third runway would be to the northwest of the existing pair and would cross the M25 London Orbital Motorway, which would be placed in a tunnel. Terminal 5 – used by British Airways – will be expanded, initially by extending the length of one of its satellites, T5C. Another satellite, T5X, will be built to the west behind the existing T5, and will eventually be connected to a new terminal, called 5X North. Vast amounts of new car parking is proposed to the north and south of the runways. The extra capacity, airport bosses say, would mean: 'Cheaper fares through an expanded airline selection At least 30 new daily routes Extra domestic connections A better selection of flight times to the most popular destinations Flights quicker to take off.' The easyJet chief executive, Kenton Jarvis, says expansion 'represents a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares'. Britain's biggest budget airline has never flown from Heathrow because it could not get enough slots for an efficient operation. Ryanair has predicted the third runway will not be ready until 2040 at the earliest, and says it is not interested flying from Heathrow. What will the third runway cost, and who will pay? Heathrow says: '£21bn for the new runway and airfield infrastructure, up from £14bn in 2018 due to construction inflation, £12bn for new terminal and stand capacity – the brand new T5X – and £15bn for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3.' That's a total of £48bn, of which the final T2/T3 element would be likely to happen even without a third runway. The airport's main shareholders comprise a French private equity fund, Ardian, as well as the Qatari and Saudi sovereign wealth funds. They want current passengers to contribute for future expansion. This would be achieved by persuading the Civil Aviation Authority to increase substantially the current price cap per departing passenger of around £25. The airlines are furious – particularly British Airways, which would also lose its majority holding of slots at Heathrow. Carriers say the payback should come only when passenger numbers rise. What other ideas are out there for airport expansion? The Arora Group, owned by the property and hotel magnate Surinder Arora, has submitted a proposal for a smaller, cheaper project known as 'Heathrow West'. It would avoid the need to build over the M25, 'allowing for faster delivery, reduced costs and improved environmental impact'. Mr Arora says: '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.' Any other options? Yes. Two veteran aviation figures, Malcolm Ginsberg and former Concorde captain Jock Lowe, have proposed alternatives. Mr Ginsberg has a 'London City' plan for a much shorter runway north of the present pair, which he says would be far less disruptive. Captain Lowe wants to have landings and take-offs from an extended northern runway. Who is against Heathrow expansion? Expansion plans face widespread opposition from local residents concerned about extra noise and traffic, as well as environmentalists who say plans to sharply increase the number of flights are completely incompatible with commitments on carbon emissions. Dr Douglas Parr, policy director for Greenpeace UK, said: 'The government has decided yet again to prioritise more leisure opportunities for a comparatively small group of frequent fliers, whilst the rest of us have to live with the consequences of their disproportionate polluting. 'And so the thousands who live on and around the site of the new runway will see their lives put on hold for a few more years while more money and time is wasted on a doomed scheme to export more tourism wealth out of the UK in the most polluting way possible, until everyone is forced to admit that there will never be enough genuinely 'sustainable' aviation fuel to reduce the industry's emissions, and the economic case for the whole debacle just will not fly.' Paul McGuinness, chair of the No 3rd Runway Coalition, said: 'Not only is Heathrow's third runway proposal set to be by far the most expensive and least cost-effective airport expansion anywhere in the world for each extra passenger, but ratings agents have already said that Heathrow would struggle to raise even half of the £48bn required to fund the project, given the airport's current debt burden. 'So, even if the taxpayer is called in to foot the bill for the decade of disruptive construction, it seems that Ryanair's boss wasn't a lone voice when he described the government's support for Heathrow expansion as 'HS2 all over again'.' What happens next? The Department for Transport will consider the competing options decide, probably by September, on its preferred choice. The Development Consent Order (DCO) process is expected to last around 18 months and will involve yet another public consultation on the expansion plans. The Planning Inspectorate will consider the application and make a recommendation to the Transport Secretary, who will decide whether to grant the DCO. If the scheme is approved, opponents of expansion will launch judicial reviews of the minister's decision. Unless these legal challenges are successful, Heathrow can begin construction of the third runway. What about the effect on Gatwick and other airports? Were easyJet to set up at Heathrow, the obvious source of planes, pilots and cabin crew would be its large Gatwick operation. In theory that could reduce choice and increase fares at the Sussex airport. But other airlines might well move in to fill any space created.
Yahoo
01-08-2025
- Business
- Yahoo
BA's owner says Arora's plan for shorter third runway at Heathrow is ‘credible'
British Airways' parent company has described hotel tycoon Surinder Arora's Heathrow expansion as 'credible'. International Airlines Group (IAG) chief executive Luis Gallego said 'competition is good to improve things'. Mr Arora and Heathrow's owners submitted rival third runway plans to the Government this week. The former is proposing to build a shorter, 2,800-metre (9,186ft) runway so the M25 motorway does not need to be diverted. His Arora Group company claims this would result in 'reduced risk' and avoid 'spiralling cost'. In contrast, Heathrow is seeking permission for a full length, 3,500-metre (11,482ft) runway. It says a short runway would reduce operational flexibility, and still require either additional capacity on the M25 or alternative rail schemes. British Airways is the largest airline operating at Heathrow. Mr Gallego said: 'We need to work closely with both parties to understand better what they have proposed because the proposals are not comparable.' He said they are 'different solutions that we need to analyse'. Mr Gallego added: 'We have two credible proposals. 'We always think that competition is good to improve things, and we have seen that in commercial aviation in the past.' Mr Gallego continued: 'We need to work with both of them. We don't have any preference. 'We only want to build something affordable that'll allow everybody to have more passengers, but they don't have to pay the level they are paying today.' He said a change in Heathrow's regulatory model is required if a third runway is to be built, as 'this level of investment is not possible with the current one'. Heathrow said its runway and airfield plan would be privately funded at a cost of £21 billion. Its total plan, including terminals and supporting infrastructure, would be expected to cost £49 billion. Mr Arora's plan has a cost estimate of under £25 billion, not including the redevelopment of the airport's existing central area. Transport Secretary Heidi Alexander will consider the third runway plans over the summer so that a review of the Airports National Policy Statement (ANPS) can begin later this year. The ANPS will provide the basis for decision-making on any development consent order application.
The Independent
01-08-2025
- Business
- The Independent
BA's owner says Arora's plan for shorter third runway at Heathrow is ‘credible'
British Airways' parent company has described hotel tycoon Surinder Arora's Heathrow expansion as 'credible'. International Airlines Group (IAG) chief executive Luis Gallego said 'competition is good to improve things'. Mr Arora and Heathrow's owners submitted rival third runway plans to the Government this week. The former is proposing to build a shorter, 2,800-metre (9,186ft) runway so the M25 motorway does not need to be diverted. His Arora Group company claims this would result in 'reduced risk' and avoid 'spiralling cost'. In contrast, Heathrow is seeking permission for a full length, 3,500-metre (11,482ft) runway. It says a short runway would reduce operational flexibility, and still require either additional capacity on the M25 or alternative rail schemes. British Airways is the largest airline operating at Heathrow. Mr Gallego said: 'We need to work closely with both parties to understand better what they have proposed because the proposals are not comparable.' He said they are 'different solutions that we need to analyse'. Mr Gallego added: 'We have two credible proposals. 'We always think that competition is good to improve things, and we have seen that in commercial aviation in the past.' Mr Gallego continued: 'We need to work with both of them. We don't have any preference. 'We only want to build something affordable that'll allow everybody to have more passengers, but they don't have to pay the level they are paying today.' He said a change in Heathrow's regulatory model is required if a third runway is to be built, as 'this level of investment is not possible with the current one'. Heathrow said its runway and airfield plan would be privately funded at a cost of £21 billion. Its total plan, including terminals and supporting infrastructure, would be expected to cost £49 billion. Mr Arora's plan has a cost estimate of under £25 billion, not including the redevelopment of the airport's existing central area. Transport Secretary Heidi Alexander will consider the third runway plans over the summer so that a review of the Airports National Policy Statement (ANPS) can begin later this year. The ANPS will provide the basis for decision-making on any development consent order application.
The National
01-08-2025
- Business
- The National
Battle for Heathrow's future ignited by businessman Surinder Arora
An Indian-born businessman is going up against the Heathrow Airport to develop a third runaway and new terminals at the UK's main hub. Plans submitted on Thursday would see Surinder Arora's £25bn plan go head to head with Heathrow's grander £33bn scheme to develop a longer runaway that goes under the M25 motorway. Heidi Alexander, the transport secretary, welcomed the proposals as part of the government's plan to boost economic growth with large scale infrastructure projects. To support the decade long plan the government is expected to announce an overhaul of the air traffic pathways to eliminate inefficiencies in stacking and flight path patterns. Officials are reportedly ready to launch an Airspace Design Service to redraw corridors that allow the planes to queue for landing. The corridors were first outlined in the 1950s and there has been a more than 10 fold rise in traffic since that era. Arora Group said its shorter runway length of 2.8km would deliver a 'primary benefit' of avoiding the costly and disruptive need to divert the M25 motorway. It would also challenge the existing operator by constructing and running a new modernised terminal, Terminal Six, located west of the existing Terminal Five. "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," Mr Arora said. 'The Arora Group has a proven track record of delivering." Heathrow Airport has countered with its own proposals and said its expansion would eventually amount to a £49bn investment plan that would see the runways, terminals and transport infrastructure undergoing an upgrade. 'We are uniquely placed to do this for the country," said chief executive Thomas Woldbye. "It is time to clear the way for take-off.' Its plan promises to deliver an annual passenger footfall of 150m from 84m last year. It said its 3.5km runway would run to the northwest of the existing airport. It said it would expand Terminal Five to two new arms to the west and north. It would also demolish terminals one and three and redesign three. Ahead of an official review it offered to discuss with its airlines how a shorter runway would deliver the same benefits as its plan. Arora has worked with leading engineer Bechtel for a cost estimate of under £25 billion and says its reduced land footprint will lessen disruption to local residents and businesses. Under its blueprint the new runway could be fully operational by 2035 and its new Terminal Six would open in two phases, in 2036 and 2040. Heathrow has suggested that despite government promises of a revamped planning process, its rival would face judicial review and other time consuming legal hurdles. The government's ambition of securing planning consent by 2029 and a new runway being operational within a decade is a key factor in the bidding process. Heathrow says there would be 276,000 new flights annually to boost the daily traffic to 756,000 aircraft. It has joined with airlines outside its current customer pool like easyJet to suggest new providers would operate from Heathrow for the first time. It has also said it will try to match its connections to UK destinations to that at Amsterdam, which it currently lags by ratio of 23:13. Other promises include a 50 per cent increase in cargo capacity plus 30 plus new daily flight routes to add to the 230 destinations to over 85 countries.
