The UK government is poised to give its crucial backing to a £49 billion plan for a third runway at Heathrow Airport, siding with the ambitious proposal from the airport's owner despite significant opposition from major airlines.
The Heathrow Expansion Decision
Transport Secretary Heidi Alexander is expected to confirm later today that the government will proceed with the scheme proposed by Heathrow Airport Limited (HAL). This decision comes after the Department for Transport selected HAL and the Heathrow West bid from hotel tycoon Surinder Arora as preferred bidders last month.
The government's endorsement, first reported by the Financial Times, represents a major victory for the incumbent airport operator. However, officials will stop short of fully confirming HAL as the project operator at this stage, instead endorsing the core principles of its more ambitious design.
Airline Opposition and Cost Concerns
The decision comes despite strong warnings from airline executives that HAL's proposal will dramatically increase costs for both carriers and passengers. IAG, the parent company of British Airways, has previously warned that the fee paid per passenger could double if the government selected the £50 billion option proposed by Heathrow Airport Limited.
Sean Doyle, Chief Executive of British Airways, argued last month at the Airlines 2025 conference that expansion should avoid rerouting the M25 motorway, a key feature of Arora's alternative proposal. "If you can avoid moving the M25, you should avoid moving the M25," Doyle stated. "I can't argue against the logic of that. I think we should look at ways of potentially building a shorter runway."
Regulatory Overhaul and Future Prospects
The government's announcement is also expected to include plans for an overhaul of the Civil Aviation Authority rulebook governing the expansion. This regulatory update aims to address concerns about the project's affordability and complexity.
The International Air Transport Association (IATA) has previously criticised Heathrow's approach, describing it as having an "addiction to gold-plated construction costs" and warning that under current regulations, the proposal would be "unaffordable in both the short and the long term".
While Arora's vision for the megaproject, which featured a shorter 2,800m runway that avoided rerouting the M25, appears to have been rejected, the door remains open for revised bids. Rival bidders can still submit new proposals aligned with the government's preferred plan.
The Department for Transport, Arora Group, and Heathrow Airport Limited have all declined to comment on the impending announcement.
