Upheaving Heathrow Airport’s car parks as part of plans for a third runway would cost more than the entire expansion of its closest rival Gatwick, leaked documents that reveal the magnitude of financing the controversial project show.
The UK’s biggest airport plans to replace most, if not all, of its existing car parks to build a shuttle system, at a cost of around £2.6bn, according to a briefing paper seen by City AM.
The so-called parkways scheme has angered some stakeholders, given it is only a tiny part of Heathrow’s privately-financed third runway proposals.
“Even with its track record for gold plating, from any perspective, £2.6bn for a car park is unbelievable. It’s hard to see where the return on investment for passengers lies,” said one source close to the discussions.
Such a massive expense will likely fuel concern among carriers, including British Airways and Virgin Atlantic, that passengers may end up facing significantly higher ticket prices to finance the construction of an additional strip.
One segment of Heathrow’s parking plans has already more than doubled in cost to nearly £100m after guidance from the Health and Safety Executive (HSE). It is understood that the airport declined to share details of the reasons behind such a substantial cost rise with its airline community.
An airline industry source, who requested anonymity, said there was “no better evidence of the failure of the system” than the cost of the proposals.
Heathrow, which is yet to submit a final plan formally, declined to comment on speculation when approached by City AM.
Heathrow third runway cost in the spotlight
Heathrow is aiming to deliver a third runway by 2035 at a total cost of between £40.1bn and £62.7bn, as of last year.
Chancellor Rachel Reeves gave the long-delayed project her backing earlier this year, bringing it closer than ever before to getting off the ground. However, there remain long-running questions over how it intends to deliver such a complex feat of infrastructure.
Ryanair’s chief executive Michael O’Leary described the plans, which also involve upending a huge section of the M25, as “f***ing off the wall,” in an interview with City AM last year.
London Mayor Sadiq Khan has previously argued that approval of Gatwick’s expansion would undermine the rationale for increasing capacity at Heathrow.
In a separate announcement on Friday, the West London hub unveiled plans for £10bn in private investment over the next five years as it targets handling 10m more passengers by 2031.
Government backing for a third runway comes alongside major expansions at four other London airports: Gatwick, Luton, Stansted and City Airport. All four plans cost less than Heathrow’s £2.6bn parking proposals.
