LONDON—The UK government has thrown its weight behind the much-awaited third runway for London Heathrow airport.
In a major speech Jan. 29 outlining the need for economic growth, UK finance minister Rachel Reeves backed the proposal and said the government was inviting proposals from the airport by the summer season.
Heathrow’s two existing runways operate at close to capacity, limiting the airport’s future growth. The need for a third runway has been apparent for decades, but has been caught up in a quagmire of political, local and environmental opposition.
Reeves said that a full assessment would be carried out on the proposed third runway’s value for money. Figures of up to £20 billion ($25 billion) for the project have been mooted, although that includes not only the runway and associated taxiways but also new terminal buildings and—significantly—the need to bury London’s orbital motorway, which runs around the western edge of the airport, in a huge tunnel.
Airlines have protested at such figures, accusing the airport of “gold-plating” the project.
The project would also involve razing a village on Heathrow’s northern perimeter.
A third runway would potentially raise the airport’s annual passenger capacity by around 50%, to as much as 140 million.
In her speech, Reeves added that decisions on additional expansion at London Gatwick and London Luton would follow “shortly.” Gatwick wants to transform an existing taxiway that runs parallel to the existing single runway into a second runway.
Opposition to Heathrow’s third runway will be extensive. London’s mayor, Sadiq Khan, is notably hostile to the project and environmental bodies are certain to take the project to the law courts in a bid to stop it. Perhaps significantly, however, the UK’s new Labour government has said it intends to limit the number of legal interventions that objectors can make to major new infrastructure projects.
Nevertheless, it is still likely to be a decade before the first planes take off from the new runway.
Reserved Enthusiasm
Heathrow naturally applauded the government’s stance. “We welcome [the minister’s] support for the aviation industry and recognition of the critical role we play for the economy and in delivering growth across the UK,” airport CEO Thomas Woldbye said. “Heathrow is the UK’s gateway to growth and prosperity. A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction.”
Woldbye said that once the runway is built, “It would create jobs and drive trade, tourism and inward investment to every part of the country. It would also give airlines and passengers the competitive, resilient hub airport they expect while putting the UK back on the map at the heart of the global economy. With strict environmental safeguards, it would demonstrate that by growing our economy responsibly we can ensure our commitments to future generations are delivered.”
Woldbye said successfully delivering the project at pace would require policy change—particularly around necessary airspace modernization and making the regulatory model fit for purpose.
“We will now work with the government on the expected planning reform and support ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament,” he added.
Woldbye in December 2024 cautioned that the airport might scrap plans for a new runway if government approval was not forthcoming by the end of 2025.
His Jan. 29 comments were seconded by the chief executive of AirportsUK, the trade association for UK airports, Karen Dee.
“Airports make an enormous contribution to the economy, connecting businesses, facilitating imports and exports, bringing in investment and creating jobs,” Dee said. “Expanding capacity will support growth in all these areas and will not come at the expense of our sustainability goals. New, cleaner fuels, more efficient and quieter aircraft, decarbonized airport operations and modernization of our airspace will all ensure aviation is able to meet its obligations, alongside growth.”
IAG, parent company of British Airways, Heathrow’s dominant operator, applauded the go-ahead, but with reservations.
“We welcome the government’s support for airport expansion and recognition of the key role it plays in driving growth, and we agree with the [minister] that expansion must be affordable and sustainable,” IAG said. “We also need to change the current regulatory model that has allowed Heathrow to become the most expensive airport in the world, and we look forward to working with the government, the CAA and Heathrow on fixing this for consumers.”
Virgin Atlantic, Heathrow’s second-largest operator, also expressed some caveats.
“Heathrow is critical to national infrastructure and is the UK’s only hub airport, enabling connectivity and trade to global markets, yet it remains the world’s most expensive airport with a service that falls short,” a Virgin Atlantic spokesman said. “We are supportive of growth and expansion at Heathrow, if, and only if, there is fundamental reform to the flawed regulatory model to ensure value for money for consumers, affordability for UK plc and support a competitive UK aviation industry.”
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