Heathrow submits expansion proposals

Image courtesy Heathrow

The expansion plans aim to enable Heathrow to give passengers more choice – at least 30 new daily routes, extra domestic connections and a better selection of flight times to the most popular destinations. Once completed, Heathrow’s plans aim to grow the UK economy by 0.43% GDP, add 50% capacity to the country’s most valuable trading port – already enabling more than £200bn of annual trade – while keeping its global competitive edge.

The blueprint submitted to Government today includes:

• A north-western runway up to 3,500m – a design that already has Parliamentary support
• Increased capacity to serve up to 756,000 flights and 150m passengers
• A brand-new terminal ‘T5X’, expanding Terminal 2 and three new satellite terminals

The investment consists of three main elements: £21 billion for the new runway and airfield infrastructure (up from £14 billion in 2018 due to construction inflation), £12billion for new terminal and stand capacity – the brand new T5X – and £15 billion for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3.

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’s proposals include more choice and capacity on public transport, such as enhanced rail capacity and walking and cycling routes, reducing local and environmental impacts. A new road tunnel, plans for two dedicated parkways and improvements to the country’s busiest bus and coach station will make it easier to reach the airport.

Crucially, Heathrow is confirming its commitment to reach net zero by 2050 and has a deliverable plan to get there, as well as setting targets on noise reduction and air quality. The airport is already ahead of target on its decarbonisation journey, cutting carbon from flights by around 10% since 2019, and carbon on the ground by 15% and has plans to ramp up further its world leadership on the use of Sustainable Aviation Fuel (SAF).

Heathrow’s noise footprint has reduced by 41% since 2006 and all air quality monitors around the airport are meeting limits. A third runway and redesigned airspace will give communities and passengers more certainty and reliability on flight paths.

There will be tens of thousands of employment opportunities during design, construction and operation, unlocking lifelong careers for those who live closest. Meanwhile 60% of the wider supply chain spend will go to companies outside London and the South-East, a truly national endeavour.

For the airport’s nearest neighbours, a community fund is being proposed, and Heathrow will continue to engage on how to be a better neighbour to its local community.

An appropriate regulatory framework needs to be put in place – one that encourages growth and investment while remaining affordable for customers – to secure many tens of billions of private capital from equity shareholders and from debt investors.

Feedback from the Government will be required by September to stay on track for Ministers’ set timeline.

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. 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.”

If the Government implements the necessary policy changes, Heathrow plans to consult with airlines, the local community, local authorities, businesses and others from next year. A planning application is expected to be submitted in 2028.

Support for Heathrow expansion comes from Chambers of Commerce across the whole of the UK, businesses wanting better access to global markets, trade unions reaffirming the career opportunities, while local Chambers of Commerce, educators and construction firms are ready to roll up the sleeves and get to work.

Heathrow has stressed that its role in the country’s economy is unique. Today it connects UK exporters to 92% of the world’s economy in a direct flight. It argues that expanding Heathrow will deliver new long-haul routes to growing economies and increase cargo capacity by 50%, expanding trading opportunities for businesses of all sizes and that without action, the UK is at risk of losing its global aviation hub status in the face of growing competition from European hubs. While international competitors have room to grow, Heathrow is already at capacity. Without expansion the UK’s hub will fall behind, harming opportunities for the country’s economy.

Transport Secretary Heidi Alexander welcomed the initial proposals for Heathrow expansion. She said: “I am pleased to have received the initial Heathrow expansion proposals – a significant step towards unlocking growth, creating jobs, and delivering vital national infrastructure to drive forward our Plan for Change.

“We’ll consider the proposals carefully over the summer so that we can begin a review of the Airports National Policy Statement later this year.”

Kenton Jarvis, CEO, easyJet said: "The UK business community supports the expansion of Heathrow with a third runway — an investment in the nation’s future. 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."

“Expansion at Heathrow will provide consumer and economic benefits and 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.”

Amy Smith, Managing Director (Interim), Cornwall Airport Newquay, said: “Cornwall Airport Newquay supports infrastructure development that enables true regional connectivity. The proposed third runway at Heathrow has the potential to deliver meaningful hub access for regions like Cornwall – but only if there is a clear and sustained commitment to slot accessibility and affordability for regional carriers and regional routes. Direct and reliable connectivity to a UK hub is vital for Cornwall’s economy, inward investment and the future of sustainable regional aviation.”

Willie Walsh, IATA’s Director General, commented on the proposals for the future development of London’s Heathrow Airport by Heathrow Airport Limited (HAL) and by the Arora Group: “There are clear economic arguments pointing to the benefits of expanding airport capacity in the Southeast of the UK. That includes the UK’s only global hub, Heathrow Airport. We applaud the government’s decision to support the UK’s global aspirations by advancing plans to expand Heathrow. This must not, however, come at any cost or make any assumption that the current operator is best placed to deliver the value that the UK’s economy will critically need for growth.

"HAL’s performance should give pause for concern and careful scrutiny. It regularly fails to meet agreed service level standards. The March closure of the airport was an embarrassment on the global stage that leaves little room for confidence in the airport’s management. HAL’s joy in being the world’s second most expensive airport proves that it cares little about its customers—be they airlines or travelers. And HAL’s self-promoting suggestion that its proposal is somehow superior from the get-go because it may have a head-start in the planning process willfully ignores the true priorities of the UK, airlines and travelers.

"The billions of pounds that have already been invested in Heathrow have under-performed, disappointing both passengers and airlines. So it is doubly important for the billions that will be invested in any expansion to be much better spent. That means focusing on efficiency in all aspects—cost, operations, and customer experience.

"Airlines look forward to reviewing both proposals in detail to be able to assess their merits, particularly their costs and consumer benefits. The government’s decision on the way forward must be well-informed by the airlines who will ultimately be charged to use whatever is built.

"Without any pre-judgement, having the Arora proposal already brings a welcome new perspective from a company with a respected track record and familiarity with Heathrow. This decision is too important to be left solely to HAL’s viewpoint.”