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BA Warns on Costs as Heathrow Runway Decision Nears

The transport secretary will choose a single expansion scheme this month to guide the Airports National Policy Statement review.

Overview

  • British Airways chief executive Sean Doyle said IAG could shift investment to other European hubs if Heathrow becomes uncompetitive due to expansion costs and higher charges.
  • The government is considering two rival runway proposals: a 3,500‑metre plan from Heathrow Airport Holdings that requires rerouting the M25 and a 2,800‑metre Arora Group plan that avoids moving the motorway.
  • Doyle told an industry conference a runway should avoid moving the M25 if possible, while Heathrow chief Thomas Woldbye argued the diversion is necessary to deliver required capacity and that a shorter runway yields much less capacity for nearly the same cost.
  • Heathrow’s scheme entails building a new M25 tunnel and bridges 130 metres west of the current route with traffic switched during overnight closures as part of a wider plan projected to lift annual flights from 480,000 to 756,000 at an overall cost of about £49 billion.
  • Heathrow has asked the regulator to raise per‑passenger charges by 17 percent to £33.26, a request IAG labeled excessive, as ministers review the competing runway bids before announcing which one proceeds.