Heathrow’s third runway expected to cost nearly £1 million for every metre

Heathrow's Third Runway: A Record-Breaking Price Tag

An artist’s rendering showcases the ambitious plans for Heathrow Airport’s proposed third runway.

Recent projections reveal that constructing Heathrow’s third runway could approach a staggering £1 million for every metre built.

The runway itself—factoring in materials such as cement, asphalt, and lighting—is estimated to cost £830,000 per metre. This would make it among the priciest runways ever constructed.

According to a new analysis obtained by The Telegraph, this figure is vastly higher than the norm: 95% of major airport runways worldwide have been built for between £10,000 and £100,000 per metre.

Oxford Global Projects, the consultancy behind the study, based its estimate solely on the 2.2-mile runway. When accounting for earthworks needed to stabilize the ground, the price climbs to £2 million per metre. Factoring in additional infrastructure—such as taxiways, expanded apron space, and related equipment—the cost could soar to £5 million per metre.

The report also highlights that expenses for Heathrow’s terminals, aircraft gates, baggage handling, and parking facilities are consistently among the highest 10% globally.

This research was commissioned by Heathrow Reimagined, a coalition of airlines including British Airways and Virgin Atlantic, which is advocating for reduced airport charges and a lower overall runway bill, currently estimated at £33 billion.

Oxford Global’s findings indicate a consistent trend of elevated costs at Heathrow, even after adjusting for factors like location, when compared to other London airports and leading international terminals.

Heathrow Reimagined, a group led by major airlines, is pushing to reduce the projected £33 billion cost of the new runway.

Alexander Budzier, the lead researcher, noted that capital projects at Heathrow are significantly more expensive than necessary, and that the expected cost savings from operating at Europe’s busiest airport have not materialized.

He suggested that management’s approach to cost control may be influenced by the knowledge that construction expenses will ultimately be passed on to airlines and passengers through landing fees.

Budzier emphasized that the high costs cannot be explained by ambitious design alone, but seem to result from broader issues in project planning and execution.

It’s important to note that these estimates do not include the additional expense of rerouting the M25 motorway into a tunnel to accommodate the new runway.

Calls to Shield Passengers from Financial Risks

Oxford Global compared Heathrow’s construction costs with those of 52 other terminals, 15 runways, 21 parking structures, and eight baggage systems worldwide.

Holly Boyd-Boland of Virgin Atlantic stated that the study provides “clear, independent evidence that Heathrow’s infrastructure costs have consistently exceeded those of comparable airports for many years.”

Jonathan Sullivan from International Airlines Group argued that the findings demonstrate the need for the Government and the Civil Aviation Authority (CAA) to freeze Heathrow’s charges at current levels to protect passengers from financial risk.

The CAA, which regulates aviation in the UK, is developing a new framework for airport fees and is expected to release its findings by May.

Oxford Global also criticized studies cited by Heathrow to justify its capital spending, claiming these analyses use flawed methods that favor the airport’s position.

Heathrow was approached for comment regarding the report.

Chief Executive Thomas Woldbye recently stated that landing fees would need to increase to secure investor support for the expansion. However, he disputed airline claims that ticket prices would rise by £60, suggesting instead that fees would only need to go up by £15 per passenger. He also mentioned that the expansion’s cost could be reduced if airlines chose to make the airport less attractive to travelers.

Heathrow maintains that it has a strong record of delivering major projects on schedule and within budget, and says it will continue collaborating with the Government and airlines to reduce runway costs.

The airport also referenced a KPMG study, which concluded that Heathrow’s expenses are in line with those of other airports.

A spokesperson commented: “The figures in this so-called ‘independent analysis’ do not accurately reflect our plans. The Heathrow expansion is a £33 billion project financed entirely by private investment, with no taxpayer funding required.”