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UK regulator caps funding for early costs of Heathrow expansion
The regulator said the costs were necessary to support credible expansion plans and will be recovered through small fare increases over 20 to 25 years.
On Wednesday, the Civil Aviation Authority ruled that Heathrow Airport Limited may recoup £320 million in planning costs for its third-runway project by increasing passenger fees.
Rival bidder Heathrow West, led by property billionaire Surinder Arora, also secured permission to recover £4.1 million in costs incurred before the government selected HAL's proposal last November.
British Airways, the largest carrier at Heathrow, warned that early cost recovery risks making the expansion "unaffordable for consumers and inconsistent with a credible benefits case."
Passenger charges will rise by approximately 15 pence in 2028, climbing in subsequent years, while the CAA mandated transparency and independent expert assurance as safeguards.
The government seeks a formal planning decision by 2029 to support the £33 billion infrastructure scheme, with officials aiming to complete the third runway by 2035.