Holland-Kaye not ruling out Heathrow working with rival bid, by Arora, on building 3rd runway scheme

Heathrow CEO John Holland Kaye has said he is not ruling out some form of collaboration with the team behind the Arora group bid to build a 3rd Heathrow runway.  Surinder Arora, a rich businessman who owns 16 hotels, a golf course and his own private airfield, is the largest single landowner on the site marked for Heathrow expansion. In July he put forward a plan, with US engineering firm Bechtel, in which he claimed the expansion could be done for £12.4 billion  (shorter runway, bit further east) – roughly £5 billion cheaper than Heathrow’s initial estimate. Heathrow has since altered its plans to bring down construction costs, as airlines and investors are opposed to the sky-high costs.  Now Heathrow may also try to work with Mr Arora’s company in some way. Holland-Kaye said: “It would not surprise us if we do something with him …” but would not speculate on what. Heathrow and the Arora Group are currently working on two  Heathrow hotels. The 2nd DfT consultation on the Airports NPS (for the 3rd Heathrow runway) welcomed competing bids for the work and stated the Government did not have a preference for who constructed the 3rd runway as long as it met the specifications outlined by the Airports Commission.  Jock Lowe is still promoting his “Heathrow Hub” scheme, for an extended northern runway, which is claimed to cost around £10 billion.
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Heathrow may work with rival on runway expansion

Heathrow may find some way of collaborating on part of its expansion with rival Arora Group

By Bradley Gerrard and Alan Tovey (Telegraph)

3 DECEMBER 2017

Heathrow boss John Holland Kaye has said he is not ruling out some form of collaboration with the team behind a rival expansion plan for the airport’s third runway.

Surinder Arora, a business magnate who owns 16 hotels, a golf course and his own private airfield, is the largest single landowner on the site marked for expansion.

He has released a plan alongside US engineering firm Bechtel in August in which he claimed the third runway project could be delivered for £12.4bn – roughly £5bn cheaper than Heathrow’s initial estimate. Heathrow has since altered its plans to bring down construction costs but may also try to work with Mr Arora’s company in some way.

“It would not surprise us if we do something with him as we expand the airport,” Mr Holland Kaye said. “He is an important local stakeholder and it would amaze me if we don’t do something together.”

Heathrow boss John Holland Kaye says he is working with airlines to try to keep charges close to today’s levels

Heathrow and the Arora Group are currently working on two hotels at the site but Mr Holland Kaye said he “really could not speculate” about what further collaboration might involve.

The comments come shortly after the Department for Transport issued a revised draft Airports National Policy Statement, a document which forms part of the process of airport expansion and which will be scrutinised by the Transport select committee in the House of Commons this week.

The document welcomed competing bids for the work and stated the Government did not have a preference for who constructed the third runway as long as it met the specifications outlined by the Airports Commission.

Mr Holland Kaye said, however, it was important for one organisation to run the airport and claimed this model had helped Heathrow improve punctuality and customer satisfaction in ­recent years.

The plans to add a runway at Heathrow have been criticised by one of the rival proposals, Heathrow Hub, which claims they will not be able to deliver the promised annual 740,000 flights.

Heathrow Hub said rather than building an entirely new runway, the northern one should be extended and used simultaneously for take-offs and landings, a solution it said could be ­delivered for less than £10bn.

The group commissioned engineering consultancy Ebeni to examine the current plan. Ebeni said a taxiway needed to link the new northern runway would reduce the amount of flights, because tail fins of large aircraft such as Airbus A380s and Boeing 747s using the taxiway would get in the way of aircraft taking off, creating a possible safety risk.

Ebeni said having to wait for these aircraft to clear the space required for take-off would create delays and reduce capacity from the stated 740,000 flights a year under the current plans to fewer than 700,000.

Heathrow’s chief executive wants to offer more regional routes, including to towns such as Newquay.
http://www.telegraph.co.uk/business/2017/12/03/heathrow-may-work-rival-runway-expansion/
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See earlier:

Rival Heathrow expansion consortium, Arora, upbeat as Government opens door to competition

The Telegraph reports that the government has said it welcomes competition in the construction of the nation’s airports. Hotel owner Surinder Arora had earlier this year proposed a cheaper way to build a Heathrow 3rd runway, cutting about £5 billion off the price. Government documents related to the expansion had previously assumed Heathrow would be in charge of the construction project and choose which contractors it wanted to help it fulfil the scheme. But the DfT says in the revised consultation on its Airports NPS (National Policy Statement) that it would welcome competing bids for the work. The NPS consultation says: “For the avoidance of doubt, the Airports NPS does not identify any statutory undertaker as the appropriate person or appropriate persons to carry out the preferred scheme.” And there could be “more than one application for development consent, dealing with different components individually”. The Telegraph believes a key difference, if a body other than Heathrow did the building, would be that the party behind the construction would receive the associated income it generates from passenger and airline charges, as well as retail rental payments. But there could be more risks, more costs etc.

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Airport hotel tycoon, Surinder Arora, wants Heathrow runway built soon – but a bit cheaper

A wealthy hotel tycoon, Surinder Arora, has submitted plans for a 3rd Heathrow. He has been a long time backer of a runway, and says his plan would be £5 billion cheaper than what Heathrow is offering (costing £17.5 billion). He has put his proposal to the government’s public consultation on Heathrow (the NPS consultation actually closed on 25th May.) Heathrow has been trying to find ways to make their runway + terminal scheme cheaper, as the airlines are not keen on paying the higher charges that would be needed. Ticket prices would rise. (ie. lower airline profit). The Arora Group’s proposals include altering the design of terminal buildings and taxiways, and reducing the amount of land to be built on.  They know the alterations to roads, including the M25 and the junction of the M25 and the M4, are massive problems and “threaten deliverability” of the runway project. They therefore want to “shift the runway”. Where to?  All this shows how very uncertain the runway plan has become, and the immense doubts – especially on money. Heathrow said they would welcome views on various options  “in the public consultation later this year.” The plans must first be assessed by the Commons transport committee, be amended by the DfT and then voted on in Parliament …. it is not a quick process.

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Arora’s plan for a cheaper 3rd Heathrow runway means putting it further east. ie. more noise for London

Surinder Arora, a hotel magnate, wants to get the 3rd Heathrow runway built quickly, and has made some suggestions of how it could be done more easily – and at least £5-6 billion more cheaply. But his scheme, for a shorter northern runway, means there would be even more noise pollution over London than from Heathrow’s own £17.6bn proposal. Heathrow airport did not, apparently, know of his plans till he went public with them.  If the new runway was shorter (3.2km not 3.5km) and moved a bit east, to Sipson, there would be cost savings. But this could mean noisier flights over London as aircraft may have to fly slightly lower over London by something like 300 feet or so (at a guess). One of Heathrow’s reasons for its own location for the runway was to get this 300 ft or so height gain, claiming it would make all the difference to noise levels.  The 2009 scheme, by Heathrow, for a much shorter 2.2km runway failed in part because of noise concerns, as did a plan for a 2.8km runway rejected by the Airports Commission. Willie Walsh of IAG, and Craig Keeper of Virgin Atlantic, want the cheapest scheme possible, to keep their costs down, and avoid having to increase the cost of their air fares. Amusingly, the Heathrow airport runway plan involves demolishing one of Mr Arora’s 5 hotels at the airport, two of which are under construction. Mr Arora says he was not informed by Heathrow (Willie Walsh claimed the same, for his head office building).

http://www.airportwatch.org.uk/2017/07/aroras-plan-for-a-cheaper-3rd-heathrow-runway-means-putting-it-further-east-ie-more-noise-for-london/

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