Heathrow Expansion Plan to Cost £49 Billion

SadaNews Economy - London Heathrow Airport, the largest airport in Europe by passenger numbers, announced on Friday that its expansion and modernization plan, particularly through the construction of a third runway, will cost £49 billion (€57 billion), and will be fully funded by the private sector.

This enormous cost is expected to provoke additional criticism of the project, which was approved by the British government in January after several years of legal controversy.

The airport's CEO, Thomas Waldbauer, stated in a statement, "The expansion of Heathrow has never been more important and urgent than it is today."

He added, "We are effectively operating at full capacity," emphasizing that the airport's expansion and modernization will enhance the British capital's capabilities in trade and transportation.

Despite strong opposition from environmental advocates, local residents, London Mayor Sadiq Khan, and several members of the ruling Labour Party, the government approved the plan for a new runway in January, seeking to boost economic growth in the country.

According to the statement, this plan will double the airport's capacity, from 84 million passengers annually currently to up to 150 million passengers annually.

Under the plan, the construction of the new runway and its operational commencement will take place over the next decade.

According to the statement, the cost of constructing the third runway is £21 billion, while the remaining amount from the plan will be allocated to expanding and modernizing the airport as part of a process that will occur over the "coming decades."

The airport's expansion plans have faced several legal hurdles and political opposition in recent years.

At the end of 2020, after a lengthy legal dispute, the Supreme Court issued a decision allowing for the construction of a third runway; however, the project was delayed due to the COVID-19 pandemic.

The French company "Aerdian" is the largest shareholder in "Heathrow Airport Holdings," with a 32.6 percent stake, followed by the Qatar Investment Authority (20 percent) and the Saudi Public Investment Fund (15 percent).