Rival Heathrow bidder vows to plough on despite proposal snub
The hotel billionaire behind a rival bid to develop Heathrow’s third runway has vowed to continue his pursuit to oversee the expansion despite ministers favouring a proposal submitted by the hub’s current owner that involves rerouting the M25.
Transport secretary Heidi Alexander confirmed on her decision to proceed with the £49bn vision from Heathrow Airport Limited (HAL), ignoring a string of industry warnings that it would drive up prices more than hotel tycoon Surinder Arora’s rival bid.
Heathrow had proposed a more complex plan for what promises to be one of the largest infrastructure projects in UK history, including ambitious proposals for a new tunnel under the airport and a 3,500m runway that will force engineers to move M25.
A Department for Transport statement said the proposal offered “the most deliverable option and provides the greatest likelihood of meeting the government’s ambition [to secure planning permission] within this parliament.”
The update extinguished Arora’s hopes that ministers would select his simpler design developed with airport engineer Bechtel that avoided infringing on the ring road by proposing a shorter 2,800m runway. Last month, his proposal was handpicked by ministers – alongside HAL’s – for a final round of scrutiny before they sided with the incumbent’s vision.
Speaking to CityAM in the aftermath of the decision, Arora confirmed his team would repurpose the proposal – dubbed Heathrow West – to match the government’s confirmed framework.
“We welcome the government’s decision,” he said. “The good thing is they’ve agreed on a scheme, not the promoter. And what we’ll be doing now, is making sure that, with immediate effect, our teams will start working on the longer runway… may the best person win.”
Aviation watchdog promises Heathrow red tape shake-up
The government’s decision was accompanied by news that the aviation watchdog is planning a major shake-up to the way it regulates the UK’s only hub airport in a bid to ensure planning permission for the site is granted before 2029.
Heathrow’s regulatory model has come under intense scrutiny for several years, with airlines unleashing a barrage of complaints over its sky-high passenger fees, which are the highest of any major terminal in the world.
British Airways-owner IAG warned in August that the third runway was “going to be empty”, without a major overhaul of the airport’s pricing model.
Arora, who alongside his property empire and Heathrow West has also spearheaded the Heathrow Reimagined campaign calling for the fee structure to change, said the megaproject risked becoming a “white elephant” without a root-and-branch shift.
“Everyone realises the regulatory system is broken and something needs to happen,” he said. “I very much hope and pray that it doesn’t become a white elephant, but like anything else in life… unless it’s affordable it’s never going to be delivered.”