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Arora hails major breakthrough in quest to build Heathrow's third runway

BRITISH business tycoon Surinder Arora has applauded a major development related to his enthusiasm to construct Heathrow’s third runway.

Arora has been making sustained efforts to take control of the airport’s extension from operator Heathrow Airport Limited (HAL).


Now, the Civil Aviation Authority has hired an independent consultant to have a detailed analysis of whether the British airport could be built and operated by more than a single business.

Heathrow and Arora, a major landowner around the airport, have been under stiff competition for the airport project.

Both have been trying to control the building of a third runway, and they reportedly appear unwilling to work jointly.

British Indian Arora said: “This was really great news, a great breakthrough, a complete game-changer. We always knew HAL was a huge machine, and they’d try to keep everyone out of their world.”

This is for the first time the UK’s aviation officials are considering to break the tight grip of the airport’s operator.

Arora has gained the support of Heathrow’s biggest customer, British Airways owner IAG. The chief executive officer of IAG Willie Walsh has favoured the prospect of competition.

Last year, the British parliament gave its nod for the proposed Heathrow’s extension. However, there are still concerns over the support by politicians and the implementation of the project.

Brought up in humble circumstances – when he arrived in Britain he could barely speak English – Surinder Arora, the founder of the Arora Group, has created one of the country’s leading hospitality businesses.

Arora, chairman and founder of the Arora property group, recently inaugurated his 16th hotel – the Hilton Garden Inn at Heathrow.

His offices are on the other side of Heathrow, opposite the Hilton Garden Inn.

According to Arora, HAL’s monopoly has pushed up prices. “Schiphol in Amsterdam has six runways, yet Schiphol’s landing charges are half of Heathrow’s. Heathrow is three times more than Dublin airport.”

Meanwhile, HAL commented that a different operator would significantly aggravate passenger service and raise expenditure.

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Highlights

  • Average UK house price rose 0.3 per cent in October to £272,226, down from 0.5 per cent growth in September.
  • Annual house price growth edged up to 2.4 per cent, with market remaining resilient despite mortgage rates being double pre-pandemic levels.
  • Buyers delaying purchases amid speculation that November budget could introduce new property taxes on homes worth over £500,000.
British house prices grew at a slower pace in October as buyers adopted a wait-and-see approach ahead of the government's budget announcement on 26 November, according to data from mortgage lender Nationwide.

The average house price increased by 0.3 per cent month-on-month in October to £272,226, down from a 0.5 per cent rise in September. Despite the monthly slowdown, annual house price growth accelerated slightly to 2.4 per cent, up from 2.2 per cent in the previous month.

Robert Gardner, Nationwide's chief economist, said the market had demonstrated broad stability in recent months. "Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs".

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