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Heathrow scraps new terminal to lower third runway costs

Heathrow is to scale back expansion plans including the construction of a new terminal as part of plans to keep costs down and freeze passenger landing fees when the third runway is built.

The proposals, which will see the cancellation of a new terminal, baggage facilities and an underground train, were omitted from the airport’s half-year results, published yesterday.

A spokesperson for the airport, however, confirmed to CN that the plans had now been scrapped for the foreseeable future.

The savings are expected to knock “several billions” off the cost of the new runway at the west London airport.

Heathrow will instead invest in extending terminals 2 and 5, and allow longer phasing of work over a 20-year period to keep costs under control.

Earlier this month it was announced that MPs will now not vote on the proposed expansion of Heathrow until 2018, with a final policy statement on airport capacity in the South-east not being put to parliament this year.

Ministers have previously announced that Heathrow was the government’s preferred scheme for boosting airport capacity in and around the capital.

However, transport secretary Chris Grayling has said that landing charges at the airport must remain flat as a condition of government support for the third runway, which is estimated to cost around £16.8bn.

The airport’s trading statement confirmed that it had reached a deal with Transport for London for Crossrail to serve all terminals from 2019.

Speaking to the Times, Heathrow Airport’s chief executive John Holland-Kaye said: “We will be reducing the terminal costs by several billions of pounds.

“When you think about HS2 and other big national projects the costs tend to go up rather than go down, so if we can bring the costs down it will be remarkable.”

In May the High Court threw out a bid by the operator of Heathrow to levy an access charge of more than £400 for each Crossrail train stopping at the airport.

More on Heathrow

Hear from Heathrow chief executive John Holland-Kaye at the CN Summit in November.

Featuring more than 85 clients, architects, industry leaders, engineers and contractors, the two-day CN Summit is chaired by BBC broadcaster and journalist Andrew Neil.

Go online to download the full brochure now.

Book your place at the CN Summit now and get 10 per cent off using the code CNSUM10. 


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