Major carriers operating at Heathrow have formed a coalition to oppose the airport’s latest £33 billion third-runway and terminal plan, warning the Civil Aviation Authority (CAA) that the project could ultimately cost £50 billion and load unsustainable charges on passengers. Airlines point to past overruns – including a tunnel-recladding scheme that ballooned from £24 million to more than £300 million – as evidence Heathrow’s regulated-asset-base model encourages overspending. (ft.com)
The CAA is reviewing whether the existing model, which guarantees Heathrow a return on capital via higher landing fees, should be reformed before any planning approval. Investors – among them sovereign-wealth funds and private equity – have signalled they will not release funds until a verdict is reached mid-year.
![Airlines accuse Heathrow of ‘blank-cheque’ approach as £33 bn expansion costs spiral]()
For corporate travel buyers the stakes are high: Heathrow already levies some of the world’s highest passenger fees and accounts for one-third of UK intercontinental business traffic. A 25 % tariff hike would add around £16 to a typical Europe-to-US return, according to IATA calculations – costs usually passed through to corporate fare contracts.
Amid these rising cost pressures, travel managers can still streamline another key part of the journey: documentation. VisaHQ’s platform (https://www.visahq.com/united-kingdom/) lets business travellers and their employers arrange visas worldwide in a single dashboard, with live status tracking and consolidated billing, helping offset some of the administrative headaches that higher airport fees may create.
The airlines’ counter-proposal favours a staged expansion using existing terminals and remote stands, aimed at capping spending at £16 billion. If adopted, the cheaper plan could deliver limited capacity boosts by 2029, three years earlier than Heathrow’s preferred option.
The CAA is reviewing whether the existing model, which guarantees Heathrow a return on capital via higher landing fees, should be reformed before any planning approval. Investors – among them sovereign-wealth funds and private equity – have signalled they will not release funds until a verdict is reached mid-year.
For corporate travel buyers the stakes are high: Heathrow already levies some of the world’s highest passenger fees and accounts for one-third of UK intercontinental business traffic. A 25 % tariff hike would add around £16 to a typical Europe-to-US return, according to IATA calculations – costs usually passed through to corporate fare contracts.
Amid these rising cost pressures, travel managers can still streamline another key part of the journey: documentation. VisaHQ’s platform (https://www.visahq.com/united-kingdom/) lets business travellers and their employers arrange visas worldwide in a single dashboard, with live status tracking and consolidated billing, helping offset some of the administrative headaches that higher airport fees may create.
The airlines’ counter-proposal favours a staged expansion using existing terminals and remote stands, aimed at capping spending at £16 billion. If adopted, the cheaper plan could deliver limited capacity boosts by 2029, three years earlier than Heathrow’s preferred option.
