LONDON (Reuters) -Britain’s government will consider rival plans to expand the country’s biggest airport Heathrow in the coming months, after the Arora Group confirmed on Thursday it was submitting a proposal for a new runway and terminal.
Finance minister Rachel Reeves said in January she wanted Heathrow to build a new runway, decisively backing expansion after decades of indecision when governments weighed environmental concerns against the desire for growth.
Heathrow Airport will submit its plans for expansion, which based on a 2020 plan are likely to include a full-length runway and the moving of a section of London’s M25 motorway. The government will consider that against the Arora Group’s plan.
Located west of London, Heathrow is Europe’s busiest hub and operates at full capacity. Its two runways compete with four each in Paris’ Charles de Gaulle and Frankfurt Airport, and six at Amsterdam’s Schiphol.
Arora Group, which owns hotels and land close to Heathrow, said its plan, named Heathrow West, is for a new terminal and a new 2,800 metre (3,062 yards) runway, which would be too short for some of the biggest aircraft to use.
The plan offers a “cost-efficient solution,” the Arora Group said, adding that it does not involve moving the M25. The development is expected to cost 25 billion pounds ($33.22 billion).
Airlines, such as British Airways-owner IAG, have long complained that Heathrow is one of the most expensive airports in the world in terms of the charges it pays, and they have been worried expansion will mean higher fees.
“A shorter runway, suitable for today’s aircraft is part of the solution. Avoiding the need to cross the M25 would remove complexity, reduce costs and help deliver better value for passengers,” an IAG spokesperson said.
($1 = 0.7527 pounds)
(Reporting by Sarah Young; editing by Barbara Lewis)
