Businesses back Heathrow bid to run third runway
A group of well-known firms has urged ministers to approve the third runway expansion plan tabled by the owner of Heathrow airport, arguing its plan will deliver “the greatest economic benefit to the UK”.
In a letter to transport secretary Heidi Alexander, bosses from the likes of Burberry, Caffe Nero and Fortnum and Mason threw their weight behind Heathrow Airport Limited’s bid to run the megaproject saying the proposal included a better offer for retailers and trade-reliant firms.
“Heathrow is a brand we choose to operate within as a trusted partner, ensuring a consistent and high-quality experience that our customers can rely on,” wrote bosses from the Heathrow Business Coalition, which also includes Arup, Fuller’s and Walkers Shortbread. “We urge you to ensure that [the airport’s] growth is led by the organisation best placed to deliver it: Heathrow itself.”
The letter’s signatories, all of whom head up firms that use the west London hub for retail or international trade, argued HAL’s proposed unified terminal was a better model for retailers. They added that having a sole operator would also make negotiations and operations simpler for tenants and other firms.
The battle for Heathrow’s future
The intervention marks a ramping up of lobbying since the government confirmed that for the first time in the airport’s history, ministers would examine proposals from multiple operators hoping to run the major expansion. It has since confirmed that alongside the £50bn bid tabled by HAL, ministers were examining a rival proposal backed by hotel tycoon Surinder Arora, called Heathrow West.
The two operators tabled their respective responses in July, with strikingly different designs.
Arora’s proposal contained a shorter, 2,800m runway that avoids rerouting the M25, which its leadership says will help simplify construction and keep costs down.
This week, the shorter runway approach – which Arora has said will cost £25bn – was backed by the chief executive of British Airways, who said: “If you can avoid moving the M25, you should avoid moving the M25.”
HAL’s proposal includes plans for a standard, 3,200m strip, arguing that only a longer runway will allow the UK to reap the full economic benefit from the construction. Arora disputes those claims, saying over 99 per cent of flights would still be able to land and take off on its truncated design.
But in the letter to Alexander, the coalition of bosses argued that exporters would benefit from a longer runway that would allow “larger aircraft and direct access to emerging markets”.
They added: “As direct users of Heathrow, we represent suppliers, retailers and exporters who contribute to the airport’s success. Growth at Heathrow – delivered by Heathrow Airport Limited – translates directly into growth for our businesses… [and] Heathrow’s proposal stands to deliver the greatest economic benefit to the UK.”
The Department for Transport has said it will announce its preferred design before the end of the month.