The battle to oversee Heathrow’s multibillion-pound third runway project has intensified after a challenger confirmed it will lodge a proposal to compete against an anticipated bid from the airport’s existing management.
The Arora Group, which operates a hotel empire comprising 13 properties across transport hubs in London and the South East, has announced it will submit a proposal to oversee the approximately £21bn scheme, setting up a direct confrontation with current operator Heathrow, as reported by City AM.
The alternative plan, branded ‘Heathrow West’, presents what it describes as a “cost-efficient solution” for the contentious expansion that the Government endorsed in January as part of a series of infrastructure initiatives designed to revitalise Britain’s struggling economy.
Central to Arora’s proposition, developed in partnership with aviation construction giants Bechtel, is a commitment to avoid building across the M25, which the company argues would make the project more affordable and deliverable on schedule.
Under the Heathrow West blueprint, the runway would measure just 2,800m in length, significantly shorter than the comprehensive 3,500m runway envisaged by the airport.
Detractors argue the shortened runway would fail to provide equivalent economic and operational advantages.
However, Arora maintained its scheme would still perform effectively “for airlines, passengers and cargo”, accommodate aircraft of all categories, whilst proving substantially more economical. Beyond the contentious runway, the scheme also includes a brand-new, state-of-the-art Terminal 6, positioned west of the current Terminal 5.
Rival Heathrow bid promises to ‘unlock growth’
Billionaire hospitality tycoon Surinder Arora, spearheading the rival offer, declared: “Our Heathrow West proposal… directly meets and supports the United Kingdom’s primary objective of unlocking economic growth at the UK’s only hub airport, with a strong commitment of doing so on-budget and on-time.”
Observers will likely view Mr Arora’s proposal as the latest strike in an ongoing feud between his hotel empire, which operates six properties surrounding the west London aviation hub, and the airport’s senior leadership.
He has consistently lambasted Heathrow’s management as incompetent and wasteful, and this year launched a joint offensive with operators and carriers demanding “fundamental reform” of the airport’s regulatory framework.
The consortium alleged that Heathrow’s monopolistic control over all airport terminals has resulted in operators facing the highest per-passenger charges of any major hub, condemning the existing arrangement as “not fit for purpose.”
Heathrow’s leadership is anticipated to present its expansion blueprint on Thursday. These competing proposals signal the opening round of what is set to be an intense corporate showdown, following transport secretary Heidi Alexander’s extraordinary decision to invite submissions from competing parties.
Mr Arora commented: “We are delighted that the government has taken a common sense approach to invite proposals from all interested parties for the very first time rather than granting exclusivity to the current airport operator, no matter its track record.”
