Heathrow's expansion plan includes the costs of its long-awaited third runway, approved in January after years of legal wrangling. Photo / AFP
Heathrow's expansion plan includes the costs of its long-awaited third runway, approved in January after years of legal wrangling. Photo / AFP
London’s Heathrow Airport on Friday unveiled a £49 billion ($110b) expansion plan, including the costs of building a long-awaited third runway, approved by the UK government after years of legal wrangling.
The runway would cost £21b, with flights expected to take off within a decade.
The rest of the privately-fundedinvestment 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 150m 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.”
Despite fierce opposition from environmentalists and local residents, 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 experienced grwoing demand.
Heathrow has submitted its proposal for the 3500m runway to the government, which has also invited a rival proposal.
Green trade-offs
Heathrow’s proposal includes £12b to fund a new terminal and £15b 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,” it said in a statement.
UK Prime Minister Keir Starmer is determined to deliver major infrastructure projects to revive the UK economy which 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.
Gatwick Airport has also received backing for expansion. Photo / Getty Images
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 said 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 would 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 £10b over the next five years in upgrades to boost passenger numbers, which would be largely funded by higher charges on airlines.
