Global airline association IATA has welcomed the “statement of intent” from the UK government that it will support the building of a third runway at Heathrow airport, but insists that the hub’s charges are the most pressing issue.
UK chancellor Rachel Reeves on 29 January threw her support behind a “badly needed” third runway at Heathrow, while saying a decision is imminent on government support for capacity-boosting projects at Gatwick and Luton, as part of a wider package of measures aimed at achieving economic growth. She criticised previous governments for failing to see through to fruition earlier third-runway plans at Heathrow.
But IATA director general Willie Walsh says that while ”opportunities for relatively swift increases at Gatwick and Luton should be seized”, his belief is that Heathrow’s “decline in status” is an issue of cost, not capacity.
“Its charges remain among the highest in the world,” the former British Airways and IAG chief says of the UK’s busiest hub.
“To bolster UK competitiveness, it’s vital that charges are reduced and not increased further.”
Walsh claims that Heathrow has previously been able to “gold-plate” its construction costs, and calls on regulators to be “extremely firm on cost and efficiency matters”, amid “formidable barriers to expansion” around environmental and economic concerns relating to the addition of a runway, which will be tested during the required planning processes.
Also reacting to the government’s announcement, Heathrow airport chief executive Thomas Woldbye says the news has ”given us the confidence to confirm our continued support for expanding Heathrow”.
But he calls for a regulatory model that is “fit for purpose”.
Speaking at the Airlines 2024 event in London at the end of last year, Woldbye had said all stakeholders wanted a ”smoother and much more productive and positive process”, when it came to setting Heathrow’s charges.
Indeed, Heathrow customer Virgin Atlantic said in light of the UK governement’s announcement: “We are supportive of growth and expansion at Heathrow, if, and only if, there is fundamental reform to the flawed regulatory model.
“Heathrow is critical national infrastructure and the UK’s only hub airport, enabling connectivity and trade to global markets, yet it remains the world’s most expensive airport with a service that falls short.”
Walsh says that alongside longer-term projects, airlines would like to see more immediate measures to improve the UK’s aviation sector’s competitiveness, including cutting Air Passenger Duty and visa waiver charges.
He also highlights the role the government could play in creating strong incentives for the production of the sustainable aviation fuel that is central to the industry’s net-zero roadmap.
Still, he acknowledges that plans to expand the UK’s airports “will benefit” its economic and social position globally.
Gatwick airport has plans drawn up to begin using its Northern Runway for regular operations, taking it beyond its current use as a taxiway and back-up for the main runway. If construction begins in 2025, it says the new capacity could be online by the end of the decade.
Luton’s expansion proposal involves increasing the capacity handled by its existing runway, as part of plans that would increase its passenger capacity to 32 million annually, from 18 million today.
