Heathrow faces 'ghost town' risk over runway cost, MPs told
Two competing proposals for a third runway present starkly different price tags and approaches to infrastructure.
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Heathrow Airport faces the risk of becoming a 'ghost town' if its proposed third runway project proves too costly, members of the Commons Transport Committee have been warned. The expansion plans for the west London airport are currently the subject of scrutiny, with two distinct blueprints vying for attention.
Competing Runway Proposals
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Ministers seek advice on the economic case and potential costs of the £49 billion expansion project.
One proposal comes from Heathrow Airport itself, detailing a £33 billion project for a 3,500-metre runway. This figure could rise to £49 billion when terminal upgrades and other associated improvements are factored in. A significant aspect of this plan involves relocating the M25 motorway, an undertaking estimated to cost £1.5 billion.
The second blueprint is put forward by Heathrow West, a consortium associated with the Arora Group. This alternative plan advocates for a shorter runway, initially 2,400 metres, with an overall cost of less than £25 billion. Crucially, Heathrow West's scheme does not include plans to move the M25.
Affordability Concerns Raised
Heathrow plans £1.5bn M25 reroute for third runway
Airport proposes moving motorway 130 metres west to facilitate expansion, facing opposition from London Mayor.
At the end of the day, any scheme has to be affordable. If it's not affordable, then people won't use the airport. The airlines won't come in and be able to afford to come into Heathrow. What we can't do is build something, and we are three, four times the price of Schipol or Charles de Gaulle or other airports. Then it would become a ghost town.
Surinder Arora, Heathrow West chairman
Surinder Arora, chairman of Heathrow West, presented evidence to the committee, emphasising the critical importance of affordability. He stated that if a scheme is not affordable, airlines and passengers will be deterred, leading to a potential decline in airport usage. He also noted that Heathrow Airport's plan is expected to be the most expensive new runway project ever undertaken, with passengers likely to bear a substantial portion of the cost through increased ticket prices.
While Heathrow West's proposal might consider expanding its runway to 2,800 metres in the future if economically viable, the current focus remains on the initial, less costly phase. Heathrow Airport's chief executive, Thomas Woldbye, has previously dismissed the Heathrow West plan, asserting it does not provide the necessary capacity for the airport and its airline partners.
Political and Planning Outlook
The expansion plans have also faced political opposition. London Mayor Sadiq Khan has long opposed a third runway at Heathrow. The airport's chief executive, Thomas Woldbye, has expressed a desire for clarity from the Government regarding its support for the scheme, warning that private investment could be directed elsewhere globally if certainty is not provided.
Heathrow Airport anticipates submitting a formal planning application for its expansion project within the next couple of years.
Questions this report answers
+What are the two main proposals for a third runway at Heathrow?
There are two rival blueprints. One is from Heathrow Airport, costing between £33 billion and £49 billion, which includes moving the M25. The second is from Heathrow West, costing less than £25 billion and not involving M25 relocation.
+Why is affordability a concern for Heathrow's third runway?
Heathrow West chairman Surinder Arora warned that unaffordable schemes would deter airlines and passengers, potentially turning the airport into a 'ghost town'. He noted that excessively high costs compared to other European airports would make it uncompetitive.
+What is the estimated cost difference between the two runway plans?
Heathrow Airport's plan is estimated to cost between £33 billion and £49 billion. In contrast, Heathrow West's proposal is priced at under £25 billion, representing a significant cost saving.
+When does Heathrow Airport expect to submit its planning application?
Heathrow Airport has indicated that it expects to submit a formal planning application for its proposed third runway scheme in the next couple of years.
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