IAG Airline Group CEO Supports Heathrow Runway with Conditions

International Airlines Group (IAG) CEO Luis Gallego has expressed conditional support for the proposed third runway at London Heathrow Airport. While backing the UK government’s growth agenda, Gallego emphasized the need for significant changes to Heathrow’s regulatory framework before fully endorsing the expansion project.

Speaking at an Airlines UK webinar, Gallego highlighted the importance of Heathrow as a vital hub for connectivity and economic development. “We want to develop Heathrow, and we support the development if we have the right regulatory model,” he stated. However, he pointed out that the current regulatory environment is “not fit for purpose,” making the investment impractical under existing conditions.

Gallego criticized Heathrow for its high operational costs and subpar passenger experience. “Heathrow is currently the most expensive airport in the world, but the experience for passengers doesn’t match this,” he remarked. He noted that the last review of Heathrow’s business model occurred in 2009, emphasizing the urgent need for a comprehensive overhaul to better serve customers and reduce costs for airlines.

The CEO also addressed the necessity of modernizing UK airspace. Aligning with UK Aviation Minister Mike Kane, Gallego described the current system as outdated, referring to it as “an analogue system in a digital age.” While he welcomed the government’s commitment to modernization, Gallego argued that more substantial improvements—around 15 to 20 percent—are required, rather than mere incremental changes.

Gallego’s comments come amid reports that UK Chancellor Rachel Reeves is expected to firmly support Heathrow’s third runway and introduce a second runway at London Gatwick Airport. This support marks a pivotal moment for Heathrow’s long-awaited expansion, which has been a contentious issue for over a decade. Initially approved in 2009, the third runway project faced legal challenges, including a 2020 Court of Appeal ruling deeming it unlawful under the Paris Agreement. However, the UK Supreme Court overturned this decision in December 2020, allowing the project to proceed. Despite this legal victory, the COVID-19 pandemic delayed further progress, and Heathrow CEO Thomas Woldbye indicated in July 2024 that the third runway remains a long-term goal, potentially more than a decade away.

In contrast to IAG’s cautious stance, easyJet CEO Kenton Jarvis has shown strong support for Heathrow’s expansion. Jarvis views the third runway as an opportunity to establish a scalable presence at the airport and offer more affordable travel options. “If a new runway comes along, that gives us a chance to look at what a scale move might look like—and that’s what we’d be interested in,” Jarvis said, highlighting easyJet’s interest in leveraging Heathrow’s expanded capacity to enhance its operations.

Additionally, Gallego praised the UK government’s decision to waive the newly introduced Electronic Travel Authorization (ETA) requirement for transit passengers. The ETA, which became mandatory for non-European visitors on January 8 and costs £10 ($12), allows multiple visits over two years or until the traveler’s passport expires. Starting April 2, European travelers will also need an ETA to enter the UK. Gallego welcomed the waiver for transit passengers, stating, “It’s very good that they have decided transit passengers will not have to pay more—that was a mistake.” He warned that increasing fees could negatively impact demand, as passengers may choose alternative airports if costs rise.

Despite the waiver, the UK Home Office proposed increasing the ETA fee from £10 to £16 on January 16, a move criticized by the International Air Transport Association (IATA) as “bewildering.” Gallego underscored the competitive nature of global aviation hubs, emphasizing that higher costs at Heathrow could drive passengers to other airports, thereby affecting Heathrow’s competitiveness.

In summary, while IAG CEO Luis Gallego supports the expansion of Heathrow Airport, his endorsement is contingent upon significant reforms to the airport’s regulatory and operational frameworks. This balanced perspective highlights the need for comprehensive improvements to ensure that Heathrow can effectively compete as a global aviation hub, benefiting both airlines and passengers.

Related News : https://airguide.info/?s=Airlines