Key facts
- UK ministers are to appoint investment bankers to oversee the expansion of Heathrow Airport.
- Parliament voted in favor of airport expansion with a majority of 296 on June 25, 2018.
- Heathrow Airport has been operating at full capacity for years.
- The Airports Commission recommended a new northwest runway at Heathrow in 2015.
- The UK's aviation sector contributes £22 billion annually to GDP and employs 500,000 people.
UK ministers are preparing to appoint investment bankers to manage the expansion of Heathrow Airport, a project that has faced significant debate and delays for decades. The move follows a decisive parliamentary vote on June 25, 2018, where MPs supported airport expansion with a majority of 296.
The expansion of Heathrow has been a contentious issue for over 50 years, with numerous reports and commissions concluding that a new runway is necessary. In 2012, the independent Airports Commission was established after the government overturned previous plans for a third runway. After extensive analysis, the commission shortlisted three options in July 2015: a second runway at Gatwick, an extension of Heathrow's northern runway by Heathrow Hub Ltd, and a new northwest runway at Heathrow. The commission unanimously recommended the northwest runway at Heathrow, coupled with measures to mitigate environmental and community impacts.
The UK's aviation sector is a critical national asset, contributing £22 billion annually to GDP and employing 500,000 people. However, airports are reaching capacity, with Heathrow operating at full potential for years and other London airports expected to be full by 2030. The need for increased capacity is seen as particularly important in light of the UK's decision to leave the European Union. Major international competitors like Dubai, Frankfurt, and Schiphol have already expanded their facilities, leaving Heathrow, which has not seen runway development since 1970, falling behind.
In 2016, the government accepted the Airports Commission's recommendation for a new northwest runway at Heathrow after a careful review. This decision was not taken lightly, with extensive analysis conducted to ensure it was based on robust evidence. The expansion also involves addressing significant community impacts, including noise, air quality, and traffic congestion, with a 16-week public consultation held from February to May 2017.
Separately, a group called Heathrow Hub, fronted by engineer Mark Bostock and former Concorde pilot Captain William "Jock" Lowe, has been campaigning for a four-runway Heathrow. This proposal, which they claim could lead to quieter expansion, has involved national advertising campaigns. Heathrow Hub stands to benefit financially from options on nearby land should their plan be accepted, with property firm Savills estimating a significant increase in land value from approximately £10,000 per acre to over £2 million per acre.