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The UK government has approved Heathrow Airport's 49 billion pound (USD 64 billion) expansion plan, prioritizing it over Arora Group's smaller proposal. The plan, including a new runway, motorway rerouting, and terminal construction, is expected to be operational by 2035, with planning consent by 2029. Recent government support for other UK airport projects demonstrates a continued focus on aviation growth. Heathrow's owners welcomed the decision but seek regulatory clarity, while airlines express concerns about potential higher charges to fund expansion. The project also faces scrutiny regarding environmental and air quality regulations.
The UK government has approved Heathrow Airport's 49 billion pound (USD 64 billion) expansion plan as the main framework for adding a new runway, preferring it over a more cost-effective proposal from Arora Group. This decision follows the finance minister's earlier commitment to construct a third runway at Heathrow to stimulate economic growth and resolve long-standing uncertainty about the airport's development. Advertisement
The total cost includes roughly 15 billion pounds for pre-planned upgrades, while constructing the new runway, rerouting London's orbital motorway, and building a new terminal is estimated at around 33 billion pounds. The government has recently supported airport development projects, approving the use of a runway at Gatwick Airport earlier this year and backing a new terminal at Luton Airport.
Heathrow's expansion plan was chosen over Arora Group's proposal, which was estimated below 25 billion pounds but did not account for all associated costs. The government emphasized that Heathrow's full-length runway plan is the most feasible option to meet its targets. Flights from the new runway are aimed to begin by 2035, with planning consent required by 2029.
Officials indicated a 'swift and robust' policy review on Heathrow's expansion will ensure alignment with the UK's climate commitments and address potential legal challenges over air quality and emissions, which have previously delayed projects. Heathrow, owned by France's Ardian, the Qatar Investment Authority, Saudi Arabia's Public Investment Fund, and other investors, welcomed the decision but stressed the need for clarity on the regulatory framework from the aviation authorities by mid-December to avoid potential delays. Arora Group expressed optimism that multiple development options remain viable and may revise its plans accordingly.
Airlines, including British Airways-owner IAG and Virgin Atlantic, have raised concerns that Heathrow's high charges could increase further to cover the expansion costs. Heathrow, located west of London, is Europe's busiest airport and already operates at full capacity. Its two runways are fewer than Paris Charles de Gaulle and Frankfurt, which have four each, and Amsterdam Schiphol, which has six. The government noted that details like runway length, layout, and supporting infrastructure will be finalized during the review process.
Source Reuters
5th Jun, 2025
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