Latest News

Heathrow Airport expansion plan of $64 billion chosen by UK

The government announced on Tuesday that Britain chose Heathrow Airport’s expansion and upgrade plan worth 49 billion pounds ($64 billion) as the basis for a new runway. This was over a more affordable rival proposal.

The decision comes after Finance Minister Rachel Reeves made a pledge

In January,

Build a third runway in

Heathrow

The airport will be redeveloped to spur economic growth and put an end to decades of uncertainty about its future.

The headline figure includes 15 billion pounds in planned upgrades and 33 billion pounds for the construction of the runway, rerouting London's motorway orbital and adding a terminal.

This year, the government has given its backing to airport projects. It has approved the use of a runway in the second largest airport in the UK, Gatwick.

September

Supporting a new terminal in Luton

April is a month of celebrations.

Heathrow’s plan was compared to an alternative by Arora Group which owns hotels and land near the airport. Arora estimated that its proposal was under 25 billion pounds. However, this figure did not include some costs.

The Government sets a target of 2035

Planning consent is required by 2029. Flights on Heathrow's brand new runway will begin in 2035. The government chose Heathrow’s full-length plan for a runway as the "most achievable option" to meet these deadlines.

The government has said that a "rapid and robust" review of Heathrow's expansion plans will help to shape them in line with Britain’s climate obligations. It also aims at avoiding potential legal challenges regarding air quality and emission levels, which it has faced in the past.

Heathrow Airport, which is owned by Ardian France, Qatar Investment Authority and Public Investment Fund of Saudi Arabia, among others, welcomed the decision by the government but asked for clarification from the aviation regulator and government by mid-December in order to avoid any delays.

Arora expressed its satisfaction that there was no single promoter and will revisit its plans.

Airline companies are worried about cost

Heathrow's high fees have been a concern for airlines like British Airways, IAG, and Virgin Atlantic.

Heathrow Airport, located west of London is Europe's busiest and most crowded airport. It operates at maximum capacity. Heathrow's two runways are comparable to the four runways at Charles de Gaulle Airport in Paris, Frankfurt Airport and Schiphol Airport in Amsterdam.

In a statement, the government said that the review will include details like the length of runways, the layout and the associated infrastructure implications.

(source: Reuters)