Heathrow's new chair has initiated talks with airlines and billionaire local landowner Surinder Arora to defuse a dispute that threatens to further delay the £49 billion plan to build a third runway at Europe's busiest airport.
Philip Jansen, appointed at the start of the year, is understood to have held meetings with the airport's carriers and Arora, who has promoted his own £25 billion expansion scheme, aiming to find common ground on cost and service issues.
Last week, Jansen and Heathrow chief executive Thomas Woldbye met International Airlines Group (IAG), the parent company of British Airways. BA dominates Heathrow with over 50% of slots, and IAG chief Luis Gallego has insisted that the cost of the third runway and associated works must be capped at £30 billion.
Jansen has also held talks with Virgin Atlantic and Arora, a multibillionaire hotelier who has long criticized the airport for overcharging passengers, airlines, and retailers. BA, Virgin, and Arora are all part of Heathrow Reimagined, a campaign group seeking to drastically reduce operating costs at the airport. Airlines, including major US carriers, have refused to back the expansion plan "at any cost."
Heathrow is considered Europe's most expensive airport. In March, the UK aviation regulator rejected its plans to significantly raise landing fees to fund a multibillion-pound upgrade. A source familiar with the talks stated: "All airlines and their stakeholders agree on the necessity and long-term economic value of a third runway. There are just differing points of view. Airlines want the lowest possible cost, while others think it can be done cheaper. We must all work together to re-engineer a way forward."
Chancellor Rachel Reeves has backed the expansion, pledging work will begin before the next election after decades of controversy. In November, ministers supported a plan for the runway to be operational by 2035, over Arora's rival proposal, though Heathrow still needs formal planning approval to start construction by 2029.
Heathrow is owned by a consortium led by French company Ardian, including sovereign wealth funds from Qatar, Singapore, and Saudi Arabia. China Investment Corporation, holding 10%, is reportedly considering selling its stake due to rising costs, according to the Financial Times.
A Heathrow spokesperson said: "As newly appointed chairman, Philip Jansen is meeting key stakeholders. Building constructive relationships with our airline and commercial partners is essential to deliver excellent customer experience and an extraordinary airport fit for the future."
Jansen has a reputation for uniting opposing parties to resolve corporate stalemates. At BT, he secured £15 billion funding for full-fibre broadband after decades of wrangling, promising to "build like fury" to address the UK's lagging internet connectivity. He also chaired WPP, leading to the removal of CEO Mark Read as part of a restructuring under Cindy Rose.
Separately, Aviation Services UK, representing ground-handling companies like Menzies, Swissport, and Dnata, wrote to aviation minister Keir Mather warning that the sector may need a Covid furlough-style scheme for employees if widespread flight cancellations occur due to fuel shortages this summer. Ground handling, which employs about 30,000 people, is paid based on flights operated. Issues of cutting and rehiring staff, who require lengthy security vetting, caused chaos during the pandemic.
