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Heathrow Hub’s ‘no frills’ option cuts price by £2bn to £7.5bn
Despite the reported offer by Heathrow Airport (‘HAL)’ to reduce the cost of its third runway concept by £3 billion, Heathrow Hub’s ‘no frills’ option would still remain at least £5bn cheaper than either of the rival proposals being considered by the Government: Heathrow Airport Ltd’s 3rd runway and the second runway at Gatwick.
The new estimates by Heathrow Hub have been submitted to the Department for Transport and will be shared with Heathrow Airport Ltd. Our concept would be implemented by the airport operator.
Jock Lowe, Director of Heathrow Hub commented: “Just like Heathrow Airport’s third runway proposal, we too can offer a ‘no frills’ option of £7.5bn, a cost reduction of £2bn, whilst still boosting potential capacity to 750,000 ATMs post expansion. Based on many of the same assumptions and cost savings as HAL’s revised plan our modifications would deliver a more basic terminal.”
“The specification in our main proposal is for a T5 standard terminal; but we can deliver a lower cost facility, the same as HAL is now proposing, if that is what ministers want. However, it remains our view that Heathrow Airport is a premium destination which should have premium terminals and facilities.
“Another major advantage of our scheme over Heathrow Airport’s is that construction can be phased, meaning that costs can be spread and runway capacity released only as noise and air quality targets are met and as demand requires. Our ‘no frills’ first phase would cost just £3.2bn.
“The key fact remains that our proposal would be simpler, cheaper, quicker and easier than building a third runway at Heathrow Airport.”
The overall cost of expansion is critically important to passengers and airlines as higher costs will mean higher passenger charges. Heathrow Hub’s cheaper proposal for an extended runway would result in lower passenger user charges.
Heathrow Hub’s plan remains the cheapest and easiest way for the UK government to deliver additional aviation capacity where it is most needed.”