Heathrow says it will cut costs of 3rd runway by £2.5 bn – not adding a new terminal

Heathrow has said it has identified options which could reduce overall cost of its 3rd runway  expansion plans by £2.5 billion, so the overall cost would be £14 billion. The reduced cost options, developed with input from airlines which want a lower overall cost, will be consulted on in January 2018. Savings would be by three things:  (1). Repositioning new buildings over existing public transport and baggage infrastructure.  This includes building additional capacity at both Terminals 2 and 5 rather than a dedicated terminal or satellite building between today’s northern runway and the new northwest runway. (2). Technological advancements which reduce the amount of terminal space required to process passengers “without compromising” the passenger experience.  (3). More efficient phasing of capacity construction – incrementally increasing terminal capacity in blocks to better match growing demand. That means more planes would have to cross the northern runway, to get to the new runway.  Heathrow will be launching a 10-week public planning consultation which will run from 17th January to 28th March 2018. The consultation will be in 2 parts – the first on infrastructure design options, and the second on the future design principles for airspace around Heathrow.


Heathrow cost of third runway cut by £2.5bn

18 December 2017 (BBC)

Heathrow Airport has cut back its expansion costs by £2.5bn in new proposals for a third runway.

The cut, which reduces the total cost to £14bn, comes from reducing space and breaking building work into stages.

Existing terminals could be expanded to hold an extra 16.5m passengers instead of a standalone terminal for the extra runway.

Various money-saving options will be put to the public as part of a 10-week consultation starting in the new year.

A new runway would increase Heathrow’s capacity from 85.5m passengers to 130m.

The Department for Transport has previously said no expansion would mean London’s five airports reach full capacity by 2034.

In Monday’s announcement Heathrow said the extra passengers generated by the new runway could be split between Terminals 2 and 5.

About 12m passengers would use an extended Terminal 2 and 4.5m an expanded Terminal 5.

Image captionA new runway would increase Heathrow’s capacity from 85.5m passengers to 130m

An additional 25m passengers would pass through a new building.

The £2.5bn saving would partly be achieved by building smaller waiting areas.

Technology such as checking in online and using electronic gates at passport control means there is less need for open space, the airport said.

‘Exorbitant costs’

Some campaign groups continue to criticise the scheme.

Tim Johnson, director of Aviation Environment Federation (AEF), said: “The savings in the project costs do nothing to change our view that runway expansion will cause unacceptable environmental damage.”

British Airways’ parent company, International Airlines Group (IAG), said Heathrow needs to be more clear on how proposal costs have been calculated.

Chief Executive Willie Walsh said: “The current regulatory system incentivises Heathrow to spend an exorbitant amount of money at passengers’ expense and the regulator is unable, or unwilling, to force the airport to provide a detailed cost breakdown.”

Heathrow hopes to start building in 2021. It plans to complete the runway by 2025.