Heathrow set to announce multibillion-pound investment – as it prepares proposal for third runway
Plans for a third Heathrow runway will be with the government “by summer”, the
airport has said, amid projections it could be decades before the project is
completed, if at all.
Business and economics reporter @taaffems [http://twitter.com/@taaffems]
Tuesday 11 February 2025 22:08, UK
Heathrow is set to announce a multibillion-pound expansion plan to create extra
capacity at the airport – as it prepares its proposal for a third runway.
The UK’s biggest airport has announced a “once-in-a-generation investment”
beginning this year to improve existing buildings and boost passenger numbers.
The development is separate from a new runway – which the government recently
announced support for
[https://news.sky.com/story/chancellor-rachel-reeves-announces-backing-for-third-heathrow-runway-13298590]
– and will be funded by Heathrow
[https://news.sky.com/topic/heathrow-airport-5885] shareholders with airlines
and customers charged for the expanded services.
Money blog: Major lender cuts mortgage rates below 4%
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As part of the investment, the capacity of terminals two and five will be
increased and the layout of the airfield will be reconfigured in a bid to
improve punctuality and to increase the number of aircraft stands.
In a speech on Wednesday, chief executive Thomas Woldbye is expected to say:
“This privately-funded programme will upgrade existing infrastructure while
laying the groundwork for a third runway, boosting UK investment and economic
growth, with tangible benefits felt this year.”
Heathrow was last month criticised by Europe’s largest airline Ryanair for being
“incredibly operationally inefficient”
[https://news.sky.com/story/ryanair-puts-customers-on-notice-of-more-unruly-passenger-lawsuits-13298989].
Because of this, Ryanair chief executive Michael O’Leary said the airline had no
interest in and would “never” fly from the airport, even if it were free.
Ed Miliband will find Heathrow third runway support ‘uncomfortable’ but he won’t
cause ‘disruption’, Harriet Harman says
Heathrow Airport: The case for and against a third runway
Money and public backlash are not the only issues Heathrow expansion plans face
Proposals for a third runway will be submitted to the government “by summer”,
the airport said, after Chancellor Rachel Reeves
[https://news.sky.com/topic/rachel-reeves-10866] backed the expansion as part of
her aim of growing the economy.
The third runway support is seen as controversial as many senior Labour
politicians such as London mayor Sadiq Khan and cabinet members including Energy
Secretary Ed Miliband have long opposed a third runway on environmental and
health grounds.
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It’s unclear how the additional carbon emissions from the extra flights would be
compatible with the state’s legally binding 2050 emissions reduction targets.
A third runway?
Doubt has been cast over whether a runway could even be built during Labour’s
time in power. The process would have to be planned and approved before building
could begin.
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Rivers and the M25 road would have to be diverted
[https://news.sky.com/story/heathrow-what-are-the-airports-expansion-plans-and-why-are-they-controversial-13297857]
and hundreds of homes would need to be demolished as part of construction.
Mr O’Leary of Ryanair said the chance of it being built was “slim” but it could
be 2050 even if it does get built.
A question over the third runway’s ability to boost the economy was raised by
left-leaning thinktank the New Economics Foundation (NEF)
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According to its analysis, growth in the number of business travellers – who may
grow business links – has ceased and instead, passenger growth has been driven
by wealthy British residents rather than foreign tourists entering the country.
The air travel industry is also one of the poorest job creators in the economy
per pound of revenue, the NEF said, while the environmental downsides of more
flights are “significant”.
Steel pact
As part of interim, pre-third runway expansion Heathrow signed a charter to
maximise opportunities for the use of British steel, a move welcomed by steel
bosses, unions and the government.
