Latest news with #airportexpansion
The Independent
an hour ago
- 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.
Daily Mail
2 hours ago
- Business
- Daily Mail
Heathrow's £49 billion third runway battle is back on
A planning row was set to take off today as Heathrow unveiled its designs for a third runway. Britain's biggest airport believes the project, including terminals and infrastructure, can be built within a decade at a cost of around £49 billion. If passed, it will allow flights to 30 new destinations, add 0.43 per cent to the UK's GDP and carry 66 million more passengers per year, Heathrow says. But it is set to face a battle, with Mayor of London Sadiq Khan (pictured), who is strongly opposed to a third runway on noise and environmental grounds, suggesting he could launch a legal challenge. The extension would involve diverting a section of the M25 through a tunnel running underneath the new runway and will mean a major redesign of the airport. The submission of the plans comes ahead of the Government formally approving proposals for a second runway at Gatwick in the next few weeks. It marks the largest expansion of Britain's airports for half a century, as Labour attempts to revive Britain's sluggish economy with infrastructure projects . But it will also reignite a major row within the party and highlight sharp divides between those who want growth and those concerned about the environment. While a majority of MPs are likely to back the project if it goes to a vote, Sir Keir Starmer and many of his Cabinet ministers have previously voted against Heathrow expansion. Earlier this year, Ed Miliband (pictured), the Secretary for Energy Security and Net Zero, had to issue a statement saying he wouldn't quit over the third runway given his previous opposition to the plans. Political rows and legal challenges over pollution have repeatedly held up plans for a Heathrow expansion, which were first raised more than two decades ago. The plans will be reviewed by Transport Secretary Heidi Alexander before a consultation on the airport's national policy statement. Should permission be granted for a new runway, a full planning application can then be submitted in 2028. The new runway would mean 276,000 new flights annually and 68million more passengers. It would cost £21billion, with the rest of the planned budget paying for a redesign of the airport. The total number of flights would increase to 756,000 a year, carrying 150million passengers. Heathrow CEO Thomas Woldbye said: 'It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity.' The expansion will be financed by private investment, but airlines have expressed concern that the airport will hike its passenger charges to pay for the project. Business groups welcomed the plans, saying they were 'an investment in the nation's future'. A joint statement from the Confederation of British Industry, British Chambers of Commerce, MakeUK, Federation of Small Businesses and Institute of Directors said: 'The benefits are clear: for exporters, it opens up vital access to major and emerging markets; for visitors, it enhances global and domestic connectivity; and for businesses, it unlocks billions in private investment, strengthening supply chains, creating jobs, and driving skills across the country.' But green campaigners continue to oppose the expansion, arguing that it is bad for the environment due to noise and air pollution. 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, while the rest of us have to live with the consequences of their disproportionate polluting.' Richard Holden, Shadow Transport Secretary, welcomed the announcement but said it was vital it got the expansion right. 'The Government's role is now to ensure the process delivers real benefits for Britain, for passengers, protects taxpayers, and guarantees proper local consultation,' he said.
South China Morning Post
5 hours ago
- Business
- South China Morning Post
London's Heathrow Airport unveils US$65b expansion plan for third runway
London's Heathrow Airport on Friday unveiled a £49 billion (US$65 billion) expansion plan, including the costs of building a long-awaited third runway, approved by the UK government after years of legal wrangling. Advertisement The runway would cost £21 billion, with flights expected to take off within a decade, while the rest of the privately-funded investment will go toward expanding and modernising the airport. Heathrow, Europe's busiest airport by passenger numbers, said the expansion would provide at least 30 new daily routes, more domestic connections and improved flight times. The increased capacity would almost double the number of annual passengers from 84 million currently to up to 150 million passengers annually. Heathrow Airport. File photo: AFP 'It has never been more important or urgent to expand Heathrow,' said Chief Executive Thomas Woldbye.
France 24
9 hours ago
- Business
- France 24
Heathrow unveils £49 bn expansion plan for third runway
The runway would cost £21 billion, with flights expected to take off within a decade, while the rest of the privately-funded investment will go toward expanding and modernising the airport. Heathrow, Europe's busiest airport by passenger numbers, said the expansion would provide at least 30 new daily routes, more domestic connections and improved flight times. The increased capacity would almost double the number of annual passengers from 84 million currently to up to 150 million passengers annually. "It has never been more important or urgent to expand Heathrow," said chief executive Thomas Woldbye. "We are effectively operating at capacity to the detriment of trade and connectivity," he added. Despite fierce opposition from environmentalists and local residents, the London mayor Sadiq Khan and some Labour MPs, the Labour government backed the new runway in January in a bid to boost UK economic growth. It would be a rare expansion in Europe, where countries are split between efforts to reduce greenhouse gas emissions and the needs of a strategic sector that has seen demand grow. Heathrow has submitted its proposal for the 3,500 metre runway to the UK government, which has also invited a rival proposal. Green trade-offs Heathrow's proposal includes £12 billion to fund a new terminal and £15 billion for modernisation. "A third runway and supporting infrastructure can be ready within a decade, and the full investment across all terminals would take place over the coming decades," Heathrow said in a statement. UK Prime Minister Keir Starmer is determined to deliver major infrastructure projects to revive the UK economy that has struggled to take off since the party came to power a year ago. The government is expected to also back expansion at Gatwick airport, south of the capital, in October -- having recently approved upgrades to London's Stansted, Luton and City airports. Britain's Supreme Court ruled at the end of 2020 that Heathrow could build the third runway, overturning a legal decision to block construction on environmental grounds. Local residents "will see their lives put on hold for a few more years while more money and time is wasted on a doomed scheme," said Douglas Parr, policy director for Greenpeace UK. He added the plans "export more tourism wealth out of the UK in the most polluting way possible." Arora Group, one of Heathrow's largest landowners, on Thursday said it will submit a rival bid to build a shorter third runway, promising lower costs and less disruption to local residents and the environment. "This is the first time the government has invited a competing proposal for Heathrow expansion," the UK-based property and hotel firm said in a statement. Airport-owner Heathrow's latest investment proposal comes in addition to plans to invest £10 billion over the next five years in upgrades to boost passenger numbers, which would be largely funded by higher charges on airlines.
The Independent
10 hours ago
- Business
- The Independent
Heathrow's £21bn third runway plan revealed – and could be ready by 2039
Heathrow airport has said it can build a third runway for £21billion within a decade. The airport is seeking permission to open a new 3,500-metre runway to the north-west of its existing location. Plans have been submitted to the government for a new full-length runway, but insisted it is open to considering a shorter one. This would enable an additional 276,000 flights per year, from 480,000 today to 756,000. The M25 motorway would need to be moved into a tunnel under the new runway. Heathrow also wants to create new terminal capacity for 150 million annual passengers, up from 84 million currently. This would involve a new terminal complex named T5XW and T5XN, extending Terminal 2, and demolishing Terminal 3 and the old Terminal 1. Heathrow said its runway and airfield plan would be privately funded at a cost of £21billion. It attributed the increase from its estimate of £14billion in 2018 to 'construction inflation'. The total plan, including terminals and supporting infrastructure, would be expected to cost £49 billion. Airlines have expressed concern that the airport will hike its passenger charges to pay for the project. Heathrow believes it is possible to meet the government's ambition of securing planning consent by 2029 and the new runway being operational within a decade. The airport's chief executive, Thomas Woldbye, said: '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.' EasyJet chief executive Kenton Jarvis said Heathrow expansion 'represents a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for consumers'. The airline carries the most passengers on flights from UK airports but does not serve Heathrow. Mayor of London Sir Sadiq Khan said he remains opposed to a third runway 'because of the severe impact it will have in terms of noise, air pollution and meeting our climate change targets'. He warned that City Hall will 'carefully scrutinise' the proposals, adding: 'I'll be keeping all options on the table in how we respond.' Tony Bosworth, climate campaigner at the charity, Friends of the Earth, said if Prime Minister Sir Keir Starmer wants to be 'seen as a climate leader' then backing Heathrow expansion is 'the wrong move'. He went on: 'A third runway raises serious, unanswered questions about how it fits with the UK's climate commitments.' On Thursday, hotel tycoon Surinder Arora published a rival Heathrow expansion plan which involves a shorter runway to avoid the need to divert the M25 motorway. The billionaire's Arora Group said a 2,800-metre runway would result in 'reduced risk' and avoid 'spiralling cost'. Chancellor Rachel Reeves, who gave her backing for a third runway in a speech on growth in January, said: 'We are one step closer to expanding our biggest airport – boosting investment in Britain, increasing trade for businesses, and creating up to 100,000 jobs.' Transport Secretary Heidi Alexander described the expansion proposals as 'a significant step towards unlocking growth, creating jobs, and delivering vital national infrastructure'. She will consider the 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. Conservative shadow transport secretary Richard Holden said his party welcomed the investment in UK infrastructure, but insisted it must be privately funded. He said: 'This is a private venture, and it must remain that way. There can be no backup blank cheque from taxpayers. 'Britain needs infrastructure that is affordable, accountable and ambitious, and that means open scrutiny, real competition, and a clear eye on delivery.'
