A coalition of major UK businesses has urged the Government to support Heathrow Airport’s plan for a third runway.
Executives from firms including Burberry, Caffè Nero, and Fortnum and Mason wrote to Transport Secretary Heidi Alexander backing the proposal to build a full-length 3,500-metre runway. They emphasised that “centralised management” of the airport is vital for “efficient commercial negotiations” and “strategic allocation of space,” adding that Heathrow’s reputation as a trusted brand is key to their operations. Other signatories included engineering consultancy Arup, pub chain Fuller’s, and steel producer 7 Steel UK.
Heathrow’s owners, led by private equity firm Ardian and the sovereign wealth funds of Qatar and Saudi Arabia, argue that a shorter 2,800-metre runway proposed by the Arora Group would provide significantly less capacity while costing nearly as much. Chief executive Thomas Woldbye said the full-length runway would deliver “much more capacity” compared with the shorter alternative.
The Arora Group, led by hotel entrepreneur Surinder Arora, has highlighted that its shorter runway could accommodate 99.3 per cent of flights in a three-runway system and would cost approximately £23bn, around 30 per cent less than Heathrow’s plan. They argue the reduced cost would translate to lower charges for airlines and passengers.
Transport Secretary Heidi Alexander is expected to announce by the end of the month which scheme will be taken forward to inform the Airports National Policy Statement (ANPS), which provides the framework for airport expansion decisions.
Airlines have raised concerns about the potential impact on passenger charges from Heathrow’s expansion, while the debate continues between delivering maximum capacity and managing costs.
