Published by Global Banking and Finance Review
Posted on February 11, 2025
LONDON (Reuters) - London's Heathrow Airport, one of the world's busiest hubs, will submit its proposal for a third runway to the British government by summer, its chief executive Thomas Woldbye will say in a speech on Wednesday.
The move comes after finance minister Rachel Reeves said last month the government would back the construction of a new runway at Heathrow to boost trade and economic growth.
"A third runway is critical for the country's future economic success, and I confirm we will submit our plans for a third runway to government this summer," Woldbye will say, according to a preview of his speech.
Heathrow will consult stakeholders including airlines and local communities before finalising the plan, he will say, and the project will only go ahead if rules on noise, air quality and emissions are met.
Successive governments have dithered over whether to expand the site to the west of London, caught between the need for more capacity and concerns over the environmental impact.
Reeves, who has pushed for growth since her Labour party came to power last July, said the case for a third runway was stronger than ever and she wanted to see permission being granted by the end of this parliament in 2029.
Woldbye previously said a third runway could be operational by 2035.
Even with the government's support, the plan - one of the country's most controversial infrastructure projects - has numerous hurdles to overcome before construction can start, including how it would be financed.
Heathrow is operating at 99% capacity and risks being overtaken by European rivals. Its two runways compare with four each in Paris' Charles de Gaulle and Frankfurt Airport, and six at Amsterdam's Schiphol.
Woldbye will also launch on Wednesday a privately-funded plan to upgrade existing infrastructure at Heathrow. It includes new investment to improve terminal infrastructure and local transport connections.
(Reporting by Catarina Demony; Editing by Ros Russell)
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