Heathrow third runway affordability concerns raised at Parliament hearing

Summarised from 2 outlets · Updated 14 Oct, 14:44 · Archive

MPs heard warnings that Heathrow Airport's £33 billion third runway proposal could be unaffordable for airlines and passengers.

The Commons Transport Committee heard evidence on Wednesday about competing proposals for Heathrow Airport's third runway expansion. Heathrow Airport's scheme would cost £33 billion, rising to £49 billion with terminal and other improvements, and would involve moving the M25 motorway at a cost of £1.5 billion. A rival consortium called Heathrow West, backed by hotel tycoon Surinder Arora, has proposed a shorter runway of 2,400 metres at less than £25 billion, without requiring the motorway move.

Surinder Arora warned that an unaffordable scheme would deter airlines from using Heathrow and risk turning the airport into a ghost town. He said the project must be affordable and could not be built at costs three or four times higher than comparable airports such as Schiphol or Charles de Gaulle.

Heathrow's chief solutions officer Helen Elsby told the committee that affordability should not be included in the government's planning scorecard. She said affordability should be checked at regular intervals during the 20-year project rather than forming part of the decision-making criteria now. The government's current framework includes climate, noise pollution, nature and economic benefit but not cost.

Airlines and freight companies have lobbied the Transport department to include cost as a criterion before Transport Secretary Heidi Alexander selects a preferred proposal, fearing passengers and airlines would foot the bill through higher fares and charges.

How it is being reported

• Heathrow rejects calls to put affordability at heart of third runway debateAffordability should not be included in the scorecard that the government sets third runway developers, Heathrow’s operations chief has told MPs, rejecting industry concerns that costs could spiral after ministers rubber stamp a design. Helen Elsby, the chief solutions officer at Heathrow Airport Limited, said the project’s frontrunner was “absolutely aligned with the criticality of [...]City AM · 14 Oct, 14:33
• 'Ghost town' threat to Heathrow Airport if £33 billion third runway proves too costly, MPs warnedHeathrow’s expansion plans are unaffordable, says a rival consortiumEvening Standard · 14 Oct, 10:38

In this story: Heathrow Airport · Commons Transport Committee · Surinder Arora · Helen Elsby · Heathrow West · Heidi Alexander · Civil Aviation Authority

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