Key facts
- Heathrow Airport can pass over £300m in third runway bidding costs to passengers.
- Heathrow Airport will be allowed to claw back up to £320m through higher airport charges.
- Rival bidder Heathrow West will also be allowed to recover £4.1m in costs.
- The Civil Aviation Authority (CAA) approved passing these costs onto passengers.
- Airport charges per passenger are expected to increase by up to 30 pence in the coming years.
Heathrow Airport has received approval from the Civil Aviation Authority (CAA) to recover up to £320 million in costs associated with the early stages of its third runway project. This recovery will be facilitated through increased charges to airlines, which are expected to translate into higher airfares for passengers, potentially adding up to 30 pence per ticket over approximately 20-25 years. A rival expansion scheme, Heathrow West, led by property billionaire Surinder Arora, will also be permitted to recoup £4.1 million in costs incurred up to November 25. The CAA stated that these recovered costs cover essential planning and design expenses for the expansion proposal, aiming to balance progress with consumer protection. British Airways, a major airline at Heathrow, expressed concerns that the early cost recovery could make the expansion unaffordable. The CAA anticipates airport charges per passenger will rise by about 15 pence in 2028, reaching an estimated 30 pence in subsequent years. The government has designated HAL's proposal as its preferred option for the third runway, which has faced opposition from environmental groups and some politicians.