Heathrow submits its £50bn expansion plan as hotel group Arora launches a rival proposal

Heathrow Airport has released its “shovel-ready” proposals for a 100% privately financed third runway in response to the Government’s January statement in strong support for a third runway.

Heathrow says it can deliver an operational third runway within a decade if the Government “moves at pace with necessary policy changes and an appropriate regulatory framework.”

According to the airport’s proposal, an expanded Heathrow would increase capacity to serve up to 756,000 flights and 150m passengers annually by supporting at least 30 new daily routes, extra domestic connections and a better selection of flight times to the most popular destinations. Terminals will be more spacious and accessible and flights quicker to take off, thanks to a “once-in-a-generation redesign of the airfield”.

Once completed, Heathrow say an expanded airport with three runways would grow the UK economy by 0.43% GDP and add 50% capacity to the country’s most valuable trading port.

The blueprint submitted to Government includes three main elements:

• £21bn for the new north-western runway up to 3,500m and airfield infrastructure. This includes the investment required to obtain consent, procure the land, prepare the land including M25 realignment and expand the airfield with the runway, taxiways and associated airside infrastructure.  

• £12bn for new terminal and stand capacity – the new T5X. This includes the investment required to expand the airfield with aprons and stands connecting to the existing T5, construction of T5X and T5XN to support increased passengers, baggage systems, airside and landside infrastructure, car parks and connectivity enhancements. T5X would be a new “second front door” to the main T5 building, similar in size, with a large shared public transport interchange and public space between the two. T5XN would be a new satellite next to the new runway, connected by track transit

• £15bn for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3. This includes a major upgrade to Terminal 2, with the delivery of two satellite piers, enabled by the phased closure of Terminal 3 and redevelopment of the Central Terminal Area. This is planned irrespective of a third runway but is included in the total DCO for practical reasons

Heathrow’s proposals also include improvements to surface access with enhanced rail capacity and new walking and cycling routes, plus plans for two dedicated parkways and improvements to the bus and coach station.

In releasing its plans, Heathrow is also restating its commitment to reach net zero by 2050 as well as setting targets on noise reduction and air quality.

Heathrow stresses that key to delivery is government establishing an appropriate regulatory framework, “one that encourages growth and investment while remaining affordable for customers – to secure many tens of billions of private capital from equity shareholders and from debt investors.”

Heathrow CEO Thomas Woldbye said, “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 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. We are uniquely placed to do this for the country; it is time to clear the way for take-off.”

If the Government implements the necessary policy changes, Heathrow plans to consult with airlines, the local community, local authorities, businesses and others from next year. A planning application is expected to be submitted in 2028.

Without action, warns Heathrow, the UK is at risk of losing its global aviation hub status in the face of growing competition from European hubs. While international competitors have room to grow, it says, Heathrow is already at capacity. Without expansion the UK’s hub will fall behind, harming opportunities for the country’s economy.

In a joint statement of support the Confederation of British Industry, British Chambers of Commerce, MakeUK, Federation of Small Businesses and the Institute of Directors said, "The UK business community supports the expansion of Heathrow with a third runway — an investment in the nation's future. The benefits are clear: for exporters, it opens up vital access to major and emerging markets; for visitors, it enhances global and domestic connectivity; and for businesses, it unlocks billions in private investment, strengthening supply chains, creating jobs, and driving skills across the country."

On the back of Heathrow’s submission to government, hotel group Arora has launched a rival proposal, dubbed Heathrow West for a new Terminal 6 building and a 2,800m runway.

Designed by British architectural practice Scott Brownrigg with delivery partner Bechtel, Arora says Heathrow West offers “robust and deliverable solutions for this site; minimising the land required to help reduce the overall carbon footprint of the build, whilst achieving the required hub capacity. Crucially, the shortened runway will avoid the additional cost and disruption associated with crossing the M25 motorway.

Furthermore, says Arora, “in recognising the importance of resilience and affordability in Heathrow’s expansion, an efficient construction programme will enable the scheme to be delivered within 10 years and with most of the activity contained within the airport boundary.”