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Heathrow submits third runway plans as rival Arora proposal gains attention

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Heathrow submits third runway plans as rival Arora proposal gains attention
Policy
Webp heathway
London Heathrow Airport | Heathrow Airport

Heathrow Airport is moving forward with new plans for a third runway, aiming to address capacity issues and boost the UK’s aviation sector. Earlier this month, Heathrow Airport Limited (HAL) submitted a proposal that would see an operational third runway built within the next decade at an estimated cost of $28.2 billion (£21 billion).

The UK’s aviation industry currently contributes about $160 billion to the national economy, according to the International Air Transport Association (IATA). HAL claims its expansion plan would create thousands of jobs and add around 0.43% to the country’s GDP. The airport, which operates near full capacity with two runways, handled almost 84 million passengers and about 474,000 aircraft movements last year.

The proposed north-western runway would be up to 3,500 meters long and increase annual capacity to roughly 756,000 flights and 150 million passengers—almost double current levels. This added capacity could open up at least 30 new destinations and allow airlines more frequent services on existing routes.

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Frontier Economics analysis suggests these changes could raise UK GDP by 0.43% by 2050 while supporting thousands of new jobs across the sector.

IATA supports expanding Heathrow but has concerns about HAL’s management record. In a statement, IATA Director General Willie Walsh said there are clear economic reasons for expanding airport capacity in southeast England but questioned whether HAL is best suited for delivering such a project: “There are clear economic arguments pointing to the benefits of expanding airport capacity in the Southeast of the UK…We applaud the government’s decision to support the UK’s global aspirations by advancing plans to expand Heathrow. This must not, however, come at any cost or make any assumption that the current operator is best placed to deliver the value that the UK’s economy will critically need for growth.”

Walsh cited high operating costs and previous service failures as concerns: “leaves little room for confidence.” He emphasized that future expansion should focus on efficiency in cost, operations, and customer experience. IATA also welcomed an alternative proposal from Arora Group.

Arora Group has put forward its own plan called "Heathrow West," featuring a shorter 2,800-meter runway north of the existing airfield. The design avoids a staggered layout and does not require expensive motorway crossings, which Arora says will lower costs and reduce environmental impact.

Their proposal includes bringing a new runway into service by 2035 alongside Terminal 6 opening in two phases: T6A in 2036 and T6B by 2040. Bechtel would partner on construction if selected.

Arora estimates their plan at $33.6 billion (£25 billion), though this figure excludes redevelopment of current infrastructure—potentially bringing total costs close to HAL's estimate when modernization is included.

Walsh stated: “Airlines look forward to reviewing both proposals in detail to be able to assess their merits, particularly their costs and consumer benefits." He added that government decisions should reflect airline input rather than relying solely on HAL's perspective.

Organizations Included in this History
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