Heathrow’s £21 Billion Third Runway Plan Aims to Boost UK Economy

Heathrow Airport has revived its long-debated third runway proposal, submitting plans to deliver the project within the next decade at a cost of approximately £21 billion   ($28.2 billion). According to Heathrow Airport Limited (HAL), the expansion could add around 0.43% to the UK’s GDP, create thousands of jobs and open new global destinations.  

Currently operating at near full capacity with two runways, Heathrow handled 84 million passengers and 474,000 flights last year. The proposed north-western runway, which would be 3,500 meters long, is expected to increase capacity to 756,000 flights and 150 million passengers annually. This would enable airlines to expand routes, add 30 new destinations and increase frequency on existing services, reinforcing the UK’s £125 billion aviation sector. 

The International Air Transport Association (IATA) supports additional runway capacity in the Southeast but remains cautious about HAL’s ability to deliver. Director General Willie Walsh cited high operating costs, service shortfalls and recent operational disruptions as concerns. He stressed that expansion must prioritise efficiency, cost control and customer experience, warning against assuming HAL is the best operator for the project. 

IATA also welcomed a competing bid from the Arora Group, noting that competition could encourage better value for airlines and passengers. 

Arora Group’s “Heathrow West” plan proposes a 2,800-metre runway north of the existing airfield, avoiding the staggered layout and costly motorway crossing in HAL’s plan. Backed by engineering firm Bechtel, Arora claims its approach could reduce costs, speed up construction and limit environmental disruption. 

The proposal includes a new Terminal 6, to be completed in two phases between 2036 and 2040, with an estimated cost of £25 billion ($33.6 billion). While this figure excludes upgrades to existing infrastructure, the overall expense could match HAL’s plan once modernisation is factored in.  

Both plans promise significant economic benefits, but the UK government will consider input from airlines before making a decision. Walsh emphasised that the choice should be guided by the needs of the aviation industry and passengers, not solely by Heathrow Airport Limited’s vision. 

If approved, Heathrow’s third runway, whichever proposal is chosen, could redefine the UK’s air travel landscape, enhance connectivity and support long-term economic growth.