Heathrow expansion: no ‘gold-plated’ third runway, says transport secretary

Rival plan for extended runway files a formal competition complaint

Arriving soon? The government says the Heathrow third runway is still on track (Simon Calder)

The transport secretary has warned Heathrow that the third runway must provide value for money.

Chris Grayling said that while “expansion is long overdue”, it must be cost-efficient.

“Heathrow’s customers should not pay for a ‘gold plated’ solution,” he said.

Airlines say that the airport already has the highest charges in the world, and are demanding there should be no increase during or after the completion of a project estimated to cost £14bn.

They are led by Willie Walsh, chief executive of BA’s parent company IAG. In October 2017, Mr Walsh called Heathrow’s third runway plans a “ridiculous glory project”.

But the government has stopped short of making any guarantees on costs, pledging only “to keep airport charges as close as possible to current levels”.

The Civil Aviation Authority has been commissioned to act as a go-between in airport-airline negotiations.

Tim Alderslade, chief executive of Airlines UK, said: “Airlines support expansion at Heathrow as it’s best placed to deliver the biggest gains to passengers and the wider economy.

“Expansion is paid for not by Heathrow but by airline customers in the form of charges. Heathrow must not increase these to pay for a disproportionately expensive scheme.”

A Heathrow spokesperson said: “We welcome the secretary of state’s desire for new airlines to help shape our plans for expansion, putting the interests of passengers at the heart of developing solutions to some of the industry’s challenges.

“We know, from our continuous engagement with new and current operators at the airport throughout the expansion planning process, that a healthy mix of airline experts helps to improve choice and competition, resulting in better service and value for money for passengers.”

Meanwhile the promoter of the Heathrow Hub extended runway scheme has filed a formal complaint to the Competition and Markets Authority (CMA).

The Hub concept would double the length of the northern runway, allowing flights to land and take off simultaneously. The scheme was rejected by the Davies Commission, along with a second runway at Gatwick, in favour of a third runway at Heathrow.

The Hub backers allege that Heathrow Airport Ltd “abused its dominant market position” by refusing to guarantee that it would implement the extended runway scheme, were it to be chosen.

Jock Lowe, director of Heathrow Hub, said: “After years of trying to work cooperatively with Heathrow Airport and the Department for Transport, we have decided it is time to take the gloves off.

“The consequence of Heathrow’s veto and the flawed process run by the DfT is that consumers and airlines are being saddled with its unnecessarily complex, noisy and expensive third Runway which will take years to build.

“Our scheme is cheaper, quicker, quieter and easier to build than the third runway.”

A Heathrow spokesperson said: “It is untrue to suggest we vetoed the plans submitted by Heathrow Hub. The northwest runway scheme has gained the support of the government, backing by the independent Airports Commission process and most recently, the Transport Select Committee.

“We are taking forward a plan that delivers for our passengers, our partners, businesses across Britain and importantly for our local communities – it’s now time to deliver it.”

The government has reiterated that it will shortly publish a final draft Airports National Policy Statement for a parliamentary vote “in the first half of this year”.

It is almost three years since the Davies Commission recommended unanimously that a third runway should be built at Heathrow.

On the day the commission issued its final report, 1 July 2015, Mr Walsh said: “Without political vision and leadership, it will end up on the shelf gathering dust like its predecessors.”