Willie Walsh says Heathrow runway unlikely to go ahead, due to rising environmental concerns

Willie Walsh, boss of BA’s owner IAG believes the £14bn (or is it £32?) 3rd runway at Heathrow is unlikely to go ahead due to a growing backlash over the environment. He said the huge project is likely to fall flat despite finally winning approval from Parliament last year. He said: “I think it is a bigger challenge today than it was a year ago. And I can’t see it getting any easier.  Two years ago I would have said it was probably 60/40 that it would go ahead. I’m probably 60/40 against it going ahead at this stage. I wouldn’t rule it out completely. ” Mr Walsh said that the huge costs involved, coupled with the carbon emissions from an extra 700 plans in the air every day after the new runway opens in 2026, will make it increasingly difficult to pull off. “They are really going to struggle to justify the environmental impact, when the economic argument to expand the airport gets undermined by the cost of the expansion.  I think the next six to 12 months are going to be critical.”

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British Airways boss says Heathrow is unlikely to get a third runway due to environmental concerns

The boss of British Airways owner IAG believes the £14bn third runway at Heathrow Airport is unlikely to go ahead due to a growing backlash over the environment.

Willie Walsh said the huge project to boost capacity at Europe’s busiest air travel hub is likely to fall flat despite finally winning approval from Parliament last year.

It came as he raised concerns over how BA handled a pilot strike which caused mass cancellations last month – and offered only lukewarm support to the airline’s boss Alex Cruz.

On Heathrow expansion, Mr Walsh said: “I think it is a bigger challenge today than it was a year ago. And I can’t see it getting any easier.”

“Two years ago I would have said it was probably 60/40 that it would go ahead. I’m probably 60/40 against it going ahead at this stage. I wouldn’t rule it out completely.

“What’s very clear to us that Heathrow is incapable of developing that runway [in a way] that makes financial sense.”

Mr Walsh said that the huge costs involved, coupled with the carbon emissions from an extra 700 plans in the air every day after the new runway opens in 2026, will make it increasingly difficult to pull off.

He said: “They are really going to struggle to justify the environmental impact, when the economic argument to expand the airport gets undermined by the cost of the expansion.

“I think the next six to 12 months are going to be critical.

“This is money that is being spent, and in my opinion is being wasted, that gets passed through to consumers.”

At a press conference in Toronto, Mr Walsh also admitted to being “frustrated” at being kept at arm’s length from the standoff between British Airways and its pilots.

Strikes in September, the first-ever by BA pilots, grounded almost all services and cost IAG €137m (£121m).

But Mr Walsh insisted the row was not “unprecedented” or existential”. A former pilot himself, he admitted to having “sympathy” for the genuine concerns.

He said: “I’ve had pilots approach me and ask me [if I] would get involved.

“As I’ve said to them: Be careful what you wish for. I think I understand their issues probably better because I used to be a pilot. So I can appreciate some of the concerns that they expressed.”

“If I were there I would probably want to address those. That’s not to say I would be more generous on the pay than BA. .”

Asked if he backed Mr Cruz, Mr Walsh said: “Well, Alex is the CEO. He’s the boss. That’s the way it works. He’s the CEO of BA and he has the responsibility to manage these issues.”

But he declined to explicitly give the BA divisional head his full confidence, saying: “People say when you get to industrial dispute, there’s failing on both sides.

“I think the team in BA were genuine in how they approached it. It’s always easy to say ‘that’s not what I would have done’ or ‘I wouldn’t start from here’ but I think they made a very genuine effort to make an agreement.”

BA pilots have rejected an 11.5pc pay rise spread over three years, despite a  similar deal being accepted by cabin and ground crew.

While a third strike in late September was called off, formal talks have to restart, raising the spectre of more industrial action ahead.

Under an agreement with unions when IAG was formed in 2011, Mr Walsh is not allowed to be directly involved in any industrial dispute at one of the group’s airlines.

He said: “It may be frustrating to me at times, but that’s what we signed up to.”

In what appeared to be Mr Walsh laying down a marker to Mr Cruz, he said: “I am sure those issues can be resolved in the right climate. There’s always a deal to be done.” 

Mr Walsh admitted to concerns that the ongoing row could have ramifications for BA’s brand but insisted the flag carrier has a robust reputation.

The 57-year-old has been a fierce critic of Heathrow, whose biggest customer is BA, for some time.

A Heathrow spokesman said: “We agree with Willie Walsh – Heathrow expansion will only be delivered by meeting strict environmental targets and with an affordable plan.

“What is also clear is that expansion will dramatically increase competition amongst airlines and choice for passengers – ultimately leading to lower airfares.

“We’ve designed our plans with these principles in mind and look forward to submitting them to the planning authorities next year.”

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