Britain has confirmed full support for Heathrow Airport’s large expansion and upgrade programme, choosing it as the foundation for building a new runway after years of stalled decisions.
The backing marks a major step for UK aviation policy, following finance minister Rachel Reeves’ January commitment to deliver a third runway to help drive economic growth.
The £49 billion programme combines already planned upgrade spending with new construction, including a terminal and motorway changes.
The decision, reports Reuters, also aligns with the government’s push to expand capacity across multiple UK airports, signalling a coordinated effort to strengthen national aviation infrastructure.
Heathrow plan selected over rival
The government has adopted Heathrow’s proposal instead of Arora Group’s competing plan.
Arora Group, which owns land and hotels around the airport, had estimated the cost of its approach at under £25 billion, though several key expenses were not included in that figure.
Heathrow’s approved package totals £49 billion, with around £15 billion dedicated to upgrades already in motion and roughly £33 billion covering the new runway, changes to London’s orbital motorway and construction of a new terminal.
Heathrow operates at full capacity with two runways, a tight limit compared with the larger layouts at Charles de Gaulle, Frankfurt and Schiphol.
Runway timeline set for 2035
The government has outlined a 2035 target for flights from Heathrow’s new runway, with planning consent required by 2029.
Ministers said the full-length runway plan offered the strongest chance of meeting the timeline, which helped secure its selection.
A policy review described as “swift and robust” will shape how Heathrow’s expansion aligns with the UK’s climate responsibilities, including emissions and air quality rules that have blocked past efforts, notes Reuters.
Details such as runway length, overall layout and the impact on related infrastructure will be considered during this review as part of preparations for the planning phase.
Government support expands across UK airports
Backing for Heathrow’s expansion follows a year of active government endorsement across the aviation sector.
In September, ministers approved the regular use of a runway at Gatwick, the country’s second-biggest airport.
In April, they supported a new terminal at Luton. The Heathrow decision continues this trend as the government looks to increase national airport capacity and reduce pressure on busy hubs.
Heathrow is owned by Ardian of France, the Qatar Investment Authority, Saudi Arabia’s Public Investment Fund and others.
As per Reuters, the airport said it welcomed the decision, while stressing the need for clarity from the aviation regulator and the government by mid-December to prevent delays.
Airlines raise concerns about charges
Airlines, including British Airways owner IAG and Virgin Atlantic, have long warned that Heathrow’s charges are already high and could rise further to fund expansion.
Carrier concerns focus on the impact of fees on ticket prices, especially as Heathrow prepares for major construction phases.
According to Reuters, the government noted that the review process will consider costs and regulatory implications as it finalises the expansion policy.
Heathrow’s two runways remain a constraint, and expansion aims to manage increasing demand while improving the airport’s ability to operate at scale alongside major European competitors.
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