The transport secretary has shortlisted two potential operators to oversee the development of Heathrow’s third runway as part of an overhaul of the planning process that she hopes will speed up the megaproject’s delivery.
Heidi Alexander told MPs on Wednesday that bids from incumbent operator Heathrow Airport Limited (HAL) and the ‘Heathrow West’ proposal from hotel tycoon Surinder Arora remained under “active consideration”, confirming that five other proposals from unnamed bidders had been rejected.
Ministers will now seek further information from the rival schemes, Alexander added, before coming to a conclusion on which bid to progress before the end of next month.
In what was the first formal update on the third runway’s construction since the deadline for submissions closed in August, Alexander also unveiled a revamped planning process that should speed up approval by as much as a year.
The transport secretary confirmed the government would aim to publish its Airports National Policy Statement (ANPS), which sets the parameters against which the planning application would be judged, by the summer of 2026.
This would pave the way for ministers to make a decision on the megaproject – which will cost at least £25bn according to the cheaper of the two proposals – before the end of the parliament, and for flights to take off by 2035.
“Britain wants to fly, and this Government will act to meet public aspirations,” Alexander said.
“Our review of the ANPS will ensure that, while we unlock long-term capacity for more flights at the nation’s only hub airport, we will also meet our obligations to passengers, communities and the environment.”
The revamped ANPS will examine four key tests for proposed schemes to meet, including on climate change, noise and air pollution, and economic growth.
Surinder Arora, executive chair of Arora Group (image courtesy of Arora Group)
Third runway progress tees up battle for the skies
Ministers’ decision to progress with Heathrow West and HAL’s respective proposals tees up what is set to be one of the biggest and most significant battles for a government tender in recent history.
HAL – the incumbent operator – unveiled a £49bn bid in August, which promised to reroute the M25 in order to make room for a standard 3,500m strip that its leadership claim will allow the runway to fulfil its economic potential.
Arora’s Heathrow West vehicle is bidding to become the first operator to break-up HAL’s decades-old monopoly, with a £25bn proposal comprising a shorter, 2,800m runway that avoids any interference with the traffic-laden ring-road. The billionaire hotel tycoon has drafted in Bechtel, an aviation consultancy that has overseen hundreds of major airport projects, and Changi airport, the top-rated aviation hub for customer satisfaction, to assist with its proposal.
Both bids contain comprehensive plans for a sixth terminal to the west of the current Terminal 5.
Alexander said officials would now gather further information on both plans, examining how they interacted with existing infrastrcture, the impact on surrounding homes and communities, evidence of private finance and the economic benefits of the scheme.
“Expanding Heathrow will be one of the largest infrastructure projects in the UK,” she said.
“Rigorous and effective cost control will be essential to its success both in minimising any impact on airline charges and costs to passengers and in maintaining credibility with financial markets.”