Heathrow passengers face decades of paying for third runway plans with ticket rises

Heathrow passengers face decades of paying for third runway plans with ticket rises

Heathrow passengers face decades of higher fares after the airport was given permission to recover early costs from developing its expansion plan.Regulator the Civil Aviation Authority (CAA) announced it has permitted Heathrow Airport Limited (HAL) to recoup £320million spent on its proposal to build a third runway since the start of last year.The major hub is set to recover the money through higher airline charges, which are typically passed on to passengers in air fares, for about the next 20 to 25 years.Heathrow West, a rival expansion scheme led by property billionaire Surinder Arora, has been given the go ahead to recoup £4.1million it spent on its plan in 2025 up to November 25, when the Government announced HAL's proposal was its preferred option.The CAA said its decision will increase the maximum airport charge per passenger by about 15p in 2028, rising to an estimated 30p in subsequent years. The Civil Aviation Authority (CAA) has given Heathrow Airport permission to recoup the £320million spent on its proposal to build a third runwayBritish Airways, the largest airline at Heathrow, warned that early cost recovery by HAL would create a risk that expansion will be 'unaffordable for consumers and inconsistent with a credible benefits case', according to a CAA document.Airlines have repeatedly complained that Heathrow has the highest charges of any airport in the world.The money that can be recovered includes the planning and design costs necessary to develop a credible expansion proposal, including preparing material to support a future development consent order (DCO) application.DCOs grant permission for major infrastructure projects to go-ahead.Tim Johnson, the CAA's director of consumers and markets, said: 'Our decision strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst also protecting them from undue increases in costs.'The costs Heathrow can recover are capped, independently scrutinised and subject to efficiency reviews, helping ensure that passengers only pay for efficient costs that are justified.'A separate process will be conducted to decide arrangements for costs incurred from 2027. The hub is set to scrape back the money through higher airline chargesThe proposed third runway expansion is expected to cost £33billion by the end of the project, including £1.5billion to move the M25 motorway, and is expected to be financed privately. A Heathrow spokesperson said: 'Heathrow expansion is about more than just a runway - this project is about making travel more affordable and giving passengers more choice, while providing a real economic boost to every region and nation of the country. 'We have been clear from the start that unlocking the private investment that will deliver these benefits requires a supportive regulatory framework. We are carefully considering the CAA proposals and will make investment decisions accordingly.'Last month, the Government launched a consultation on its Heathrow expansion national policy statement, setting out the conditions needed if the project is to be given the go-ahead.Former chancellor Rachel Reeves said she was determined to get 'spades in the ground' for the third runway in the current Parliament, and for it to be built by 2035.Prime Minister Andy Burnham, who sacked Ms Reeves, has previously expressed concerns over Heathrow expansion, stating the plans divert infrastructure investment 'away from the North and traps it in London'.Heathrow may also have to build 'green bridges' and underpasses for wildlife to protect the local environment and stop the huge infrastructure project carving up habitats.Transport Secretary Heidi Alexander hailed the new Heathrow expansion national policy statement as an 'important milestone' and 'critical to national growth'.However, the document says the development must be 'designed and landscaped to provide green corridors and minimise habitat fragmentation', adding this could include 'underpasses or green bridges to link habitats'.The requirement raises the prospect of wildlife crossings being built as part of the mega-project, in an echo of the controversial £125million HS2 tunnel constructed to protect rare bats from passing trains.Heathrow currently manages 13 biodiversity sites across 170 hectares, making up about 10 per cent of its total footprint. These include reedbeds, grasslands and woodlands, supporting more than 3,000 species.The Daily Mail approached Heathrow for comment.

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