Heathrow Airport Limited, the company which owns London Heathrow, has submitted its expansion and modernisation plan to the UK government.
Costing £49 billion, the privately financed proposal will increase capacity at the UK’s busiest airport to 150 million passengers a year.
£21 billion of the proposed costs will be invested in a third runway, which already has parliamentary approval, designed to accommodate 256,000 flights a year.
Northwest of the airport’s current site, the third runway will be up to 3,500 metres long and capable of handling aircraft of all sizes. A section of the M25 will be realigned to be under the runway.
A new terminal complex, T5X, will cost £12 billion. Its airside and landside infrastructure, including car parks, will support the increased throughput of passengers and baggage, and feature connectivity enhancements.
A further £15 billion will be invested in modernising the current airport. It includes a major upgrade to Terminal 2, including the delivery of two satellite piers. The work will be facilitated by the phased closure of Terminal 3 and the Central Terminal Area’s redevelopment.
The plan is backed by Chambers of Commerce, trade unions, businesses and airports across the UK, and the company says that the proposal will add 0.43% to GDP once complete. The plan will increase cargo capacity by 50% and around 60% of its economic benefit will be felt beyond London and the South East.
The UK’s only hub airport is currently operating at capacity. Counting 83.9 million passengers in 2024, it enables over £200 billion in trade a year.
The proposed expansion will facilitate up to 756,000 flights per year, including at least 30 new daily routes.
Promising more choice and better value for passengers, as well as greater connectivity for businesses and exporters, gaining planning consent for the proposal is targeted for 2029. The objective is for the first flight to takeoff within a decade of approval.
Thomas Woldbye, CEO of Heathrow Airport, comments: “I am proud to submit our proposals to expand and modernise Heathrow – a 100% privately financed plan. And every penny will be delivered efficiently, affordably, at no cost to the taxpayer and at pace.”
“Our proposal for expanding Heathrow will drive benefits for the whole UK in increased connectivity and economic growth, benefiting the Exchequer and subsequently people across the country by strengthening public finances. It will reduce fares through increased competition and facilitate additional routes to new global and domestic destinations,” he continued.
The Aurora Group has submitted an alternative expansion plan. Heathrow West will feature a third runway measuring 2,800 metres. Aiming to be operational by 2035, Heathrow West has Carlton Brown as its CEO and its proposed new Terminal 6 would open in two phases – T6A in 2036 and T6B in 2040.
