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Olympics prompt £1.5bn more work at Heathrow

NEWS

BAA has announced plans for a further £1.5 billion redevelopment at Heathrow airport in time for the 2012 Olympics.

Heathrow East will see the redevelopment of Terminal 2 and the Queens building to improve efficiency on the eastern side of the airport. The size and location of the site will allow BAA to ensure construction of the new buildings does not disrupt day-to-day operations.

Mick Temple, managing director of Heathrow, said: 'This is an opportunity that will only be with us for a short period. It makes sense to do it now with the construction of T5.' The plan still needs approval from airlines and regulatory support from the Civil Aviation Authority.

Mr Temple also said the new plans would make the existing Terminal 1 effectively redundant and said it would 'either be closed or redeveloped'.

Birmingham International airport has also been the subject of redevelopment plans.

Last week consultation started for a £300 million proposal for a third passenger terminal and second runway.

The airport needs planning permission for the expansion, with capacity potentially rising from 10 million to 33 million passengers a year.