Demolishing Heathrow Airport’s car parks as part of third runway plans would cost more than the complete expansion of its nearest competitor Gatwick, leaked documents revealing the scale of financing for the contentious project demonstrate.
Britain’s largest airport intends to replace most, if not all, of its current car parks to construct a shuttle system, at an expense of approximately £2.6bn, according to a briefing paper obtained by City AM.
The proposed parkways scheme has infuriated certain stakeholders, considering it represents merely a fraction of Heathrow’s privately-funded third runway blueprint.
“Even with its track record for gold plating, from any perspective, £2.6bn for a car park is unbelievable. It’s hard to see where the return on investment for passengers lies,” remarked one source familiar with the discussions.
Such an enormous outlay will probably intensify concerns amongst airlines, including British Airways and Virgin Atlantic, that travellers could face substantially increased ticket costs to fund the construction of an extra runway.
One element of Heathrow’s parking strategy has already more than doubled in price to almost £100m following advice from the Health and Safety Executive (HSE).
It is understood that the airport refused to provide details regarding the reasons for such a significant cost increase to its airline partners.
An aviation industry source, speaking on condition of anonymity, described the proposal costs as “no better evidence of the failure of the system”. Heathrow, which has yet to formally submit a final plan, refused to comment on speculation when contacted by City AM.
Heathrow third runway cost in the spotlight
Heathrow is targeting delivery of a third runway by 2035 at a total cost of between £40.1bn and £62.7bn, according to last year’s figures.
Chancellor Rachel Reeves endorsed the long-delayed project earlier this year, bringing it nearer than ever to becoming reality.
Nevertheless, persistent questions remain over how the airport plans to deliver such a complex infrastructure undertaking.
Ryanair’s chief executive Michael O’Leary branded the proposals, which also involve disrupting a massive section of the M25, as “f***ing off the wall,” in an interview with City AM last year.
London Mayor Sadiq Khan has previously contended that approval of Gatwick’s expansion would weaken the case for boosting capacity at Heathrow.
In a separate announcement on Friday, the West London hub revealed plans for £10bn in private investment over the next five years as it aims to handle 10m more passengers by 2031.
This will include raising landing charges for airlines to around £33.26 per passenger.
Government support for a third runway comes alongside major expansions at four other London airports: Gatwick, Luton, Stansted and City Airport.
All four plans cost less than Heathrow’s £2.6bn parking proposals.
