Britain considers rival Heathrow expansion plans with new runway to kick-start economic growth
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Airlines have been worried expansion at Britain’s Heathrow Airport will mean higher fees.
PHOTO: REUTERS
LONDON – Britain’s government will consider two competing, multi-billion-pound plans to build a runway to increase capacity at the country’s biggest airport Heathrow that it hopes will kick-start economic growth.
British Finance Minister Rachel Reeves in January gave her backing to the Heathrow expansion
The British government has said the airlines’ increased use of sustainable aviation fuel means airport enlargements do not necessarily derail net zero targets.
Located west of London, Heathrow is Europe’s busiest hub and operates at full capacity, putting a brake on Britain’s economy. Its two runways compare with four each in Paris’ Charles de Gaulle airport and Frankfurt Airport, and six at Amsterdam’s Schiphol airport.
Heathrow Airport submitted a proposal for a new runway to the government on July 31 with an estimated total price tag of £49 billion (S$84 billion), which it said would be privately financed.
The Arora Group, which owns land and hotels around Heathrow, said its plan for a new runway would cost under £25 billion but that does not include all the development costs.
Under Heathrow’s plan, the runway and airfield infrastructure would cost £21 billion, with the balance funding a new terminal, modernising existing infrastructure and moving a motorway.
As well as a new runway at Heathrow, the British government will by Oct 27 make a final decision on whether to expand Gatwick, the country’s second largest airport, after saying it was inclined to do so in February.
At Heathrow, both projects aim for the new runway to be operational by 2035.
The Heathrow plan includes a full-length, 3,500m runway and building a tunnel to move a section of London’s M25 motorway.
Arora’s plan is to build a slightly shorter runway without moving the motorway, but at 2,800m in length, it would be unable to accommodate the biggest widebody jets.
Airlines, such as British Airways-owner IAG, have long complained that Heathrow is one of the most expensive airports in the world in terms of its charges, and they have been worried expansion will mean higher fees.
An IAG spokesperson said it backed a shorter runway.
“Avoiding the need to cross the M25 would remove complexity, reduce costs and help deliver better value for passengers,” the spokesperson said.
The submissions would now be reviewed by the government over the summer, the British Department for Transport said. REUTERS
