UK’s Heathrow expansion to cost GBP 49 bn, includes new runway, terminal

UK selects GBP 49 bn plan for Heathrow expansion: The UK government has approved PIF-backed Heathrow Airport’s GBP 49 bn expansion plan — turning down a less expensive bid from Arora Group, Reuters reports. The GBP 48 bn total includes GBP 15 bn for planned upgrade work, plus an additional GBP 33 bn for a new runway, motorway rerouting, and terminal construction.

The timeline: Flights departing from the proposed runway are scheduled to take place in 2035, with planning approval required by 2029. Heathrow — Europe’s busiest airport — has requested clarity on the regulatory framework from the government by mid-December to prevent any delays.

But British Airways is worried that the new project would raise costs to airlines, warning that rising landing fees and escalating infrastructure costs risk undermining Heathrow’s competitiveness, The National reported last week. The British flag carrier also said that it might consider redirecting future investment to another European hub if costs become too high on them.