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UK Greenlights Heathrow’s £49 Billion Expansion Plan, Paving the Way for a Third Runway
The UK government has approved Heathrow Airport’s £49 billion ($64 billion) expansion plan, selecting it over a cheaper alternative and setting a 2035 target for launching flights from a new third runway. The decision aims to boost economic growth, end decades of uncertainty, and modernize the country’s busiest airport.
UK Selects Heathrow Airport’s $64 Billion Expansion Plan
The UK government announced on Tuesday that it has chosen Heathrow Airport’s £49 billion ($64 billion) expansion and upgrade plan as the basis for adding a new runway, opting for it over a cheaper competing proposal.
The decision follows Finance Minister Rachel Reeves’ January pledge to back a third runway at Heathrow—aimed at boosting economic growth and ending decades of uncertainty surrounding the airport’s future.
The headline figure includes roughly £15 billion of previously planned upgrade work. The remaining £33 billion would cover the cost of building the new runway, modifying London’s orbital motorway, and adding a new terminal.
This year, the government has signaled strong support for major airport infrastructure projects. It approved bringing a second runway at Gatwick into regular use in September and endorsed a new terminal at Luton in April.
Heathrow’s plan was evaluated alongside an alternative proposal from the Arora Group, which owns land and hotels near the airport. Arora had estimated its proposal at under £25 billion, though some associated costs were not included.
2035 Target for the First Flights
The government has set a target of 2035 for the first flights to take off from Heathrow’s new runway, requiring planning approval by 2029. It said Heathrow’s full runway plan was selected as the “most deliverable option” to meet those deadlines.
A “fast and robust” policy review of the Heathrow expansion will be undertaken to ensure alignment with the UK’s climate commitments. The review is also meant to anticipate potential legal challenges over air quality and emissions—challenges that have stalled the project in the past.
Heathrow—owned by France’s Ardian, Qatar Investment Authority, Saudi Arabia’s Public Investment Fund, and others—welcomed the government’s decision. However, it stressed that both the aviation regulator and the government must provide clarity on the regulatory framework by December to avoid delays.
Arora said it was pleased that no promoter had been exclusively chosen and plans to reassess its own proposal.
Airlines Concerned About Costs
Airlines such as British Airways–owner IAG and Virgin Atlantic have long expressed concern that Heathrow’s already high charges could rise further to help finance the expansion.
Located west of London, Heathrow is Europe’s busiest airport and operates at full capacity. Its two runways fall behind the capacity of Paris Charles de Gaulle and Frankfurt—each with four runways—and Amsterdam Schiphol, which has six.
The government added that details such as runway length, layout, and the impact of related infrastructure will be examined as part of the review.
($1 = £0.7612)
