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Heathrow submits privately funded third runway plan amid rival bid

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Heathrow submits privately funded third runway plan amid rival bid
Policy
Webp heathrow
Heathrow Airport | Official Website

Heathrow Airport has submitted a new proposal for a third runway, aiming to address long-standing congestion issues at the West London hub. The airport currently operates at full capacity, handling nearly 84 million passengers in 2024 across about 474,000 aircraft movements. Without expansion, further growth is seen as limited.

The latest plan estimates the third runway will cost £21 billion ($27.64 billion) and would be financed entirely through private investment. This marks a departure from many infrastructure projects that rely on public funds. According to Heathrow's statement, “It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity. With a green light from the Government and the correct policy support underpinned by a fit-for-purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country.” This was stated by Heathrow CEO Thomas Woldbye.

The proposed runway would be located northwest of the current site and extend 3,500 meters. It would increase annual passenger capacity up to 150 million and allow for up to 756,000 flights per year. Plans also include constructing Terminal 5X, three new satellite terminals, and expanding Terminal 2. These changes are expected to add "30 new daily routes, extra domestic connections, and a better selection of flight times."

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Government approval has already been granted for this project. However, rising construction costs have pushed initial estimates higher; Heathrow notes that inflation has increased the projected cost of just the runway by 50% since its original £14 billion estimate in 2018. When factoring in an additional £12 billion for new terminal space and stands plus £15 billion for modernizing existing facilities, total expenses could reach nearly £50 billion.

A competing bid has also emerged from Arora Group with Bechtel as its partner. Their 'Heathrow West' proposal features a shorter 2,800-meter runway situated directly north of existing runways—avoiding major works over the M25 motorway required by Heathrow’s plan—and targets operational readiness by 2035 with phased terminal openings through 2040. The estimated cost is around £25 billion but does not include potential redevelopment costs at Heathrow’s main site.

This is reportedly the first time two separate proposals have been presented for Heathrow’s third runway project.

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