Heathrow CEO Seeks Final Decision on Third Runway by 2025

Heathrow’s Chief Executive, Thomas Woldbye, announced on Monday that the airport is urging the U.K. government to make a final decision on constructing a third runway by the end of 2025. Speaking at the Airlines 2024 conference in London, Woldbye highlighted the “positive momentum” in recent discussions with the Labour administration regarding the long-debated expansion project.

Woldbye emphasized the urgent need for additional capacity at Heathrow, Europe’s busiest airport, to support the U.K.’s economic growth and industrial strategy. “Heathrow is running out of capacity… So if we want to go beyond a certain number at Heathrow, whether that is 90 million passengers or anything around that, we need a third runway, that’s not a discussion,” he stated. He underscored that the decision ultimately rests with the government, Parliament, and other stakeholders, noting that Heathrow alone cannot determine the project’s fate.

“The project is there, we know how to build it. It has been there for a long time,” Woldbye continued. He urged the government to commit to the journey, stating, “This would be one of the biggest infrastructure projects in U.K. history, so we have to ask government, are you along for the journey? If not, we forget it.” Woldbye stressed the importance of a timely decision to avoid further delays and financial losses for Heathrow.

Heathrow is currently maximizing its existing two runways through efficiency measures while developing a growth plan that does not include a third runway. However, Woldbye asserted that without the additional capacity, the airport cannot sustain its growth trajectory. He pointed out that passenger numbers at Heathrow surged to 79 million in 2023 from 62 million in 2022, nearing the pre-pandemic peak of 80.9 million in 2019.

The proposed expansion, initially released six years ago and expected to be updated, includes building a third runway to the northwest of the current two and constructing a new terminal to replace Terminal 3. This expansion would increase the airport’s capacity by an additional 260,000 flights per year, raising the total to 740,000 flights annually.

The debate over the third runway has been ongoing for nearly two decades, marked by numerous government and legal reviews and extensive public consultations. Environmental groups like Friends of the Earth oppose the expansion, citing concerns over increased greenhouse gas emissions, harm to local wildlife, noise pollution, and traffic congestion in residential areas. They also highlight the significant public disruption and major works required on the M25 motorway surrounding London.

In 2020, the U.K.’s top court overturned a lower court decision that had deemed the previous government’s approval of a third runway illegal for not aligning with the Paris Agreement commitments. Despite legal hurdles, many airlines support the expansion, arguing that it would alleviate fierce competition and high costs associated with securing flight slots at Heathrow.

U.K. Transport Secretary Louise Haigh, speaking earlier at the same conference, reiterated her support for airport expansion, emphasizing the need to balance economic growth with environmental commitments. “I will always support airport expansion as long as it grows our economy and meets our environmental commitments,” Haigh stated.

The head of the Confederation of British Industry, Rain Newton-Smith, also addressed the impact of the recent Labour budget on businesses, noting that increased taxes and labor market reforms have led many companies to delay expansion and investment decisions. Newton-Smith highlighted the rise in employer National Insurance contributions and the Employment Rights Bill as significant burdens on businesses.

As Heathrow awaits a government decision, the future of the third runway remains uncertain. Woldbye has set a clear deadline, urging the government to act decisively by the end of 2025 to prevent further financial and operational setbacks for the airport.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com