Key facts
- Heathrow has criticized the Civil Aviation Authority's (CAA) proposals to cut investment.
- The CAA is considering allowing rival firms to lead Heathrow's expansion and terminal development.
- Heathrow argues that the proposed cuts risk "taking the UK backwards" and weakening its competitiveness.
- The airport stated its reputation is built on private investment.
- Heathrow CEO Thomas Woldbye warned that delays to necessary investment risk the growth of the UK's only hub airport.
Heathrow Airport has issued a strong rebuke of the Civil Aviation Authority's (CAA) proposals, which include slashing investment and potentially allowing rival firms to develop its expansion projects. The airport's leadership warned that these measures risk "taking the UK backwards" and diminishing its global competitiveness.
Heathrow stated that its standing as a leading global airport is founded on private investment and that it supports reforms aimed at boosting efficiency and reducing red tape. However, it opposes proposals that could undermine efforts to improve services for consumers or hinder economic growth.
CEO Thomas Woldbye emphasized that Heathrow's privately-funded expansion plans are crucial for unlocking new capacity and delivering long-term benefits. He highlighted that the airport has served Britain for 80 years but is currently operating at full capacity, with strong demand for travel and trade.
In contrast, hotel tycoon Surinder Arora, who has submitted a rival bid for Heathrow's third runway, welcomed the CAA's proposals, viewing them as a sign that competition for the development remains active.
Separately, Heathrow reported a 31% decrease in passengers from the Middle East in May, contributing to an overall 1% year-on-year decline in passenger numbers for the month. This comes after Heathrow warned in April that its current capacity limitations lead to fewer choices and higher fares for passengers, as well as missed economic opportunities for the UK.