Hopes for a third runway at London Heathrow Airport are taking off. The plans were paused in 2020 after a court challenge and the aviation industry’s slow recovery from Covid kept them grounded. But now, the new Labour government says it could support a third runway – if the proposals overcome noise and air pollution hurdles, are compatible with the UK’s climate targets and generate economic growth. The potential benefit for the government is simple: large projects create growth during and after construction, and a bigger airport improves London’s position on the world stage as an economic hub. But more runways equals more planes, which are very loud and heavy polluters. Heathrow’s existing plans (cost: £500 million) would likely have to be altered.
Labour reportedly thinks sustainable airline fuel (SAF) could be a route to climate-positive air travel in the UK. The government announced a bill in the King's Speech that would support the production of SAF. But SAF isn’t as environmentally friendly as many claim, and a normal flight still produces hundreds of tonnes of CO2.
Heathrow’s bosses believe they can expand from 80 million to 100 million annual passengers without the need for a new runway, but they admit long-term expansion relies on another runway to cope with demand.
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Heathrow’s reputation isn’t flying high. The chief executive of IAG (owner of British Airways and other airlines) said Heathrow is already losing out to other European airports due in part to a lack of investment. Emirates’ chief recently compared Heathrow to a post-Second World War airport.
Ardian, the French Private Equity firm, and the Saudi Arabia Public Investment fund are currently in the process of securing a 38 per cent stake in Heathrow. They may think overhauling the airport’s expansion plans to clamber over Labour’s hurdles is a gamble worth taking.