IAG boss Willie Walsh says there is “zero” chance of Heathrow being able to build a 3rd runway by 2026 (or for £14bn)

Date added: 27 June, 2018

Heathrow expects to have a 3rd runway built and operating by 2026 but the boss of IAG, Willie Walsh, believes there is “zero” chance of that happening. He thinks there might be a 60% of it being built by 2028 – 2030. He says the £14bn cost to build the runway is “perverse” and cast doubt on the airport’s ability to deliver the project. “I don’t believe that Heathrow Airport can build this in an efficient manner and a cost-effective manner. When you talk about an expected bill of £14bn sterling, it’s a perverse amount of money. It’s ridiculous. It’s outrageous. It has always been incentivised to spend money. The airport has a bizarre, perverse incentive to spend more money than it needs to because it gets remunerated based on the money they spend. …The airport hasn’t figured out how it will build over the top of the M25 and that is a challenge.” Mr Walsh, whose company holds the most coveted landing slots at Heathrow, wants a runway, but at a price that does not negatively impact his business. And he is not keen on a lot of new competition coming into Heathrow, to weaken his monopoly position.

.
Tweet

Heathrow expects to deliver the third runway by 2026 but the boss of IAG believes there is “zero” chance of that happening.

Tuesday 26 June 2018

The chief executive of British Airways’ parent company has called the £14bn cost to build Heathrow’s third runway “perverse” and cast doubt on the airport’s ability to deliver the project.

Speaking to Sky News after MPs overwhelmingly backed the expansion, International Airlines Group’s Willie Walsh said: “I don’t believe that Heathrow Airport can build this in an efficient manner and a cost-effective manner.

“When you talk about an expected bill of £14bn sterling, it’s a perverse amount of money. It’s ridiculous. It’s outrageous.”

:: MPs back third runway at Heathrow

The airport can expect to recoup about £20 from the ticket price when passengers arrive and depart the airport.

Mr Walsh, whose company holds the most coveted landing slots at the west London hub airport, said: “We do support the expansion of Heathrow but it has to be at the right price and it cannot be the consumers using Heathrow that are expected to pick up the bill because of inefficiency of the airport.”

The airport hopes to deliver the third runway and expanded airport by 2026.

However, Mr Walsh believes there is “zero” probability of that but there is a 60% chance of delivery by 2028-2030.

IAG shares were the biggest fallers on the FTSE 100 on Tuesday – the first trading session since the MPs’ vote on Monday night – closing down 3.5%.

https://news.sky.com/story/iag-boss-willie-walsh-slams-14bn-plan-to-expand-heathrow-11417526

It’s not the first time that the company, which owns BA, Iberian and Aer Lingus, has clashed with Heathrow Airport. Mr Walsh has been accused of attempting to “maintain a dominant monopoly for BA” at the airport by John Holland-Kaye, Heathrow’s chief executive.

Sir,

On the same day that Heathrow’s £14 billion expansion plan was rubber-stamped by parliament, the innovative, sustainable and job-creating £1.3 billion Swansea Bay scheme was kicked into the long grass (“Costly Swansea tidal power plan rejected”, Business, June 26). This sends a dispiriting message to the provinces and sanctions the ever-widening economic gulf between London and the rest of the country.

The notion that the rest of the country will share the bounty provided by Heathrow’s growth is highly dubious; in the same way that the economic benefit of HS2 will flow in the direction of the capital rather than towards the cities of the Midlands and the north, Heathrow’s expansion will benefit only the London region.

Paul Rickard
Kingston upon Thames

IAG boss Willie Walsh says there is “zero” chance of Heathrow being able to build a 3rd runway by 2026 (or for £14bn)

One of the letters in the Times:

Share this: