Heathrow announces £49 bn expansion plan including third runway

LONDON's Heathrow Airport on Friday announced a £49-billion expansion plan that includes the construction of a third runway, approved by the UK government after years of legal disputes.

The third runway is expected to cost £21 bn, with flights projected to begin within the next decade. The remaining privately-funded investment will be used for airport expansion and modernisation.

Heathrow, Europe’s busiest airport by passenger numbers, said the project would add at least 30 new daily routes, increase domestic connections and improve flight schedules. The expansion could raise the airport’s annual passenger capacity from 84 million to as many as 150 million.

"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.

The plan has faced opposition from environmentalists, local residents, London mayor Sadiq Khan and some Labour MPs. However, the Labour government supported the runway in January as part of efforts to boost economic growth.

Heathrow has submitted its proposal for the 3,500-metre runway to the UK government, which has also invited a rival bid.

Green trade-offs

The proposal allocates £12 bn for a new terminal and £15 bn for modernisation. Heathrow stated, "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."

Prime minister Keir Starmer aims to deliver major infrastructure projects to revive the UK economy. The government is also expected to back expansion at Gatwick Airport in October, after recent upgrades to Stansted, Luton and City airports.

The Supreme Court ruled in 2020 that Heathrow could proceed with the third runway, overturning a previous decision blocking it on environmental grounds.

Douglas Parr, policy director for Greenpeace UK, said 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." He added the plans "export more tourism wealth out of the UK in the most polluting way possible."

Arora Group, a major Heathrow landowner, said Thursday it would submit a rival proposal for a shorter third runway, promising lower costs and less disruption to residents and the environment. "This is the first time the government has invited a competing proposal for Heathrow expansion," the company said.

The new investment plan comes alongside Heathrow’s existing plans to spend £10 bn over five years on upgrades to increase passenger numbers, funded largely through higher airline charges.

(With inputs from agencies)