Heathrow unveils huge £49bn airport expansion plans

Heathrow Airport has unveiled its £49billion plan for a third runway, which could lead to up to 276,000 new flights each year. The move is part of the Government's biggest airport expansion drive in decades, with ministers saying they will aim to get spades in the ground by 2030.

Thomas Woldbye, Heathrow chief executive, 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.”

More than 7.2million passengers travelled through its four terminals in May, figures showed. This was up 0.4% from a year ago and represents its busiest May on record.

Heathrow's proposal for a third runway includes £33billion for expansion and £15billion for modernisation of the current infrastructure, and will be fully financed privately.

The plans include diverting a section of the M25 through a tunnel running underneath the new runway.

Heathrow insisted its plans would potentially save passengers £79billion over the next three decades as airlines like easyJet operate at scale from Heathrow for the first time.

A third runway would also lead to more than 30 new daily flight routes, in addition to today’s 230 destinations in over 85 countries.

The proposal has long been opposed by green campaigners, who have raised concerns about the impact on the environment.

Paul McGuinness, chair of the No 3rd Runway Coalition, said: “Heathrow’s expansion plans seem to have reverted to the failed, impossible proposals of yesteryear - increasing its size with new hotels, hangars, cars parks and runway by an area that is larger than Birmingham International Airport to fly as many extra planes as Gatwick currently flies. Bulldozing local villages to build the UK’s second largest airport next the largest, to bring noise blight to millions.

“Not only is Heathrow’s third runway proposal set to be by far the most expensive and least cost-effective airport expansion anywhere in the world for each extra passenger, but ratings agents have already said that Heathrow would struggle to raise even half of the £48bn required to fund the project, given the Airport’s current debt burden.

“So, even if the taxpayer is called in to foot the bill for the decade of disruptive construction, it seems that Ryanair’s boss wasn't a lone voice when he described the government’s support for Heathrow expansion as “HS2 all over again”.

Hotel tycoon Surinder Arora has published a Heathrow expansion plan that rivals a proposal from the airport’s owners.

The billionaire’s Arora Group said the “primary benefit” of the plan it submitted to the Government is a shorter new runway, which would avoid the costly and disruptive need to divert the M25 motorway.

Building a 2,800-metre third runway instead of the full-length 3,500-metre runway planned by the airport would result in “reduced risk” and avoid “spiralling cost”, the company said.

A shorter runway could have limits on its use, although Arora Group insisted it would be able to accommodate aircraft of all sizes.

Arora Group’s Heathrow West proposal states the new runway could be fully operational by 2035, while a new terminal would open in two phases, in 2036 and 2040.

The plan, developed with infrastructure company Bechtel, has a cost estimate of under £25billion, not including the redevelopment of the airport’s existing central area.

Mr Arora, who is one of the largest landowners at Heathrow, said: “After a decade working with our world-leading design and delivery team, I am very proud that the Arora Group can finally unveil to the UK Government our Heathrow West proposal, which directly meets and supports the United Kingdom’s primary objective of unlocking economic growth at the UK’s only hub airport, with a strong commitment of doing so on-budget and on-time.

“The Arora Group has a proven track record of delivering on-time and on-budget projects including in and around Heathrow airport.

“We are delighted that the Government has taken a common-sense approach to invite proposals from all interested parties for the very first time rather than granting exclusivity to the current airport operator, no matter its track record.”

Chancellor Rachel Reeves gave her backing for a third runway in a speech on growth in January.

Meanwhile Energy Secretary Ed Miliband is responsible for keeping the UK within its carbon budget – the amount of carbon the country can afford to emit while still having a chance of meeting net zero emissions by 2050.

But the Climate Change Committee has said “there should be no net airport expansion unless the carbon-intensity of aviation is outperforming the Government’s emissions reduction pathway and can accommodate the additional demand”.

Following Heathrow’s submission to its own expansion plan to the Government, Transport Secretary Heidi Alexander will review the Airports National Policy Statement, which provides the basis for decision-making on any Development Consent Order application.

Heathrow is understood to be open to a discussion with airlines about building a shorter runway if it can deliver the same benefits.