Not building third runway would be 'huge missed opportunity', warns Heathrow boss

The chief executive of Heathrow Airport, Thomas Woldbye, has emphasized that failing to construct a third runway would represent a "huge missed opportunity" for the United Kingdom.

In an interview with BBC Radio 4's Today programme, Woldbye expressed the importance of understanding the government's stance on the expansion project, particularly following Prime Minister Andy Burnham's reluctance to openly support it.

Woldbye articulated that if the airport’s owners are unable to pursue investment in the third runway, these funds "will be invested somewhere else in the world," anticipating that a decision on the matter will be made in the upcoming year.

According to the Department for Transport, the government is currently reviewing feedback from a public consultation and is weighing the next appropriate steps. A spokesperson noted that airport expansion is endorsed as a means to foster growth and opportunity across the country, provided that environmental considerations are adequately addressed. They posited that expanding Heathrow could yield approximately £40 billion in economic benefits nationwide.

Background on the Debate

The topic of a third runway at Heathrow has been a contentious issue for decades, encountering significant opposition from local residents, politicians, and climate advocates.

Last year, then-Chancellor Rachel Reeves voiced government support for the expansion, asserting that "a third runway is badly needed," and that the government could no longer "duck the decision."

Heathrow Airport is operated by a consortium of investors, led by French private equity firm Ardian, with other stakeholders including the Qatar Investment Authority, Saudi Arabia's Public Investment Fund, and the China Investment Corporation.

Investment Concerns

"If they cannot invest in Heathrow... then that money will be invested somewhere else in the world," Woldbye remarked. "It's not about reallocating this money. It's private money, not public money. Therefore, it will not remain in the UK. I believe that would be an unfortunate, significant missed opportunity for our nation."

The construction of a third runway would require the demolition of hundreds of homes, the diversion of rivers, and the rerouting of the M25 motorway between junctions 14 and 15, placing it beneath the new runway. The estimated cost for this project stands at £33 billion.

Heathrow currently accommodates over 80 million travellers annually across its four passenger terminals and two runways. Under the proposed expansion, the existing flight cap of 480,000 per year could increase to 720,000, averaging nearly 2,000 flights daily.

This additional capacity could generate substantial revenue increases for the airport's owners, with Heathrow asserting that the expansion would deliver a "huge economic boost" and create numerous jobs.

Timeline and Government Position

The anticipated opening date for the new runway is set for 2035, contingent upon the submission and approval of appropriate plans; however, Heathrow has indicated potential delays pushing this target to 2039 due to planning and regulatory challenges.

The current government's position on the third runway remains uncertain. Burnham, who previously opposed the scheme as Mayor of Greater Manchester, stated that he believes the matter should be decided by London and its residents. "We ought to hear the voice of people there first. It wouldn't be right for me to make a decision without considering the consultation," he commented.

Woldbye expressed hope that the Prime Minister would embrace the project, noting that it has the backing of trade unions.

Broader Benefits and Concerns

He further stated that the advantages of a third runway would extend beyond London. "The benefits will be experienced throughout the country as our supply chain reaches from the north to the south of the UK."

Downing Street declined to provide comments regarding Woldbye's statements.

In addressing concerns about increased noise impacting nearby communities from additional flights, Woldbye asserted that Heathrow has experienced a "stark" reduction in noise levels over the past four decades, and he predicted that this trend would continue. "My greatest concern is the prolonged uncertainty. We need to provide clarity on our plans for this project so stakeholders can move forward with their lives," he stated.

Woldbye mentioned he has not yet met the current Chancellor John Healey, but he intends to advocate for the airport's significant contributions to the economy, while also highlighting that "we are now at capacity." He urged that if sustained economic contribution is a goal, timely decisions about the runway's construction are essential to build on the groundwork laid by the previous administration and to expedite the project’s delivery.

The Department for Transport is still in the process of finalizing its Airports National Policy Statement, which will guide decisions regarding the approval of a new runway at Heathrow, with the last update having occurred in 2018.

Woldbye stated that Heathrow is currently developing a planning application, which is intended for submission in the next few years, but emphasized that any decision would be contingent upon the government's national policy framework.