Heathrow could face legal challenge if airlines forced to pay for third runway
Emirates’ boss has warned that London Heathrow Airport could face a legal challenge from its airlines if they are forced to pay for a third runway.
In an interview with the Financial Times, industry veteran Sir Tim Clark warned against further hikes to landing charges to pay for the expansion.
“This could end up in legal challenges if you are not careful . . . we have to find an elegant means which satisfies all stakeholders,” he said.
Clark, who has led Emirates since 2003, is strongly in favour of a third runway at Heathrow. He told the Financial Times there was a “crying need” to increase capacity given “quite extraordinary” levels of demand.
Heathrow has benefitted from a post-pandemic resurgence in passenger numbers and welcomed a record 83.9m through its gates last year.
However, since Chancellor Rachel Reeves gave the third strip the green light in January, questions have been raised over how it will finance expansion.
“Say the cost is £20bn, and they are using a model that places on the incumbent airline community the costs of dong that . . . that’s going to be a pretty horrendous sell job [to airlines],” Clark said. “Some might not be in existence by the time it is finished.”
Earlier this month, airlines and hoteliers that use the Hounslow hub united in calls to the aviation regulator for “urgent and fundamental” reform of its regulatory model.
The Heathrow Reimagined campaign was initially comprised of the likes of Virgin Atlantic and British Airways owner the IAG. It argues Heathrow’s monopolistic structure, which sees it act as the sole operator of all of its terminals, has led to the interests of consumers and its carriers being sidelined.
Airlines are now forced to shell out £1.1bn more each year on landing charges than at rival European hubs, even as passenger experience declines, they claim.
The group has garnered significant support in recent weeks, including that of the industry’s global trade body, the International Air Transport Association (IATA).
American Airlines on Monday became the first major airline signatory based outside the UK to join the campaign.
A spokesperson for Heathrow Reimagined said: “Despite recent announcements made declaring a “privately-funded” expansion programme, we are clear that it will be the passengers who foot the bill through higher passenger charges.
Heathrow has been approached for comment.