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Europe

Heathrow rival could lead airport expansion, UK watchdog says

The UK aviation watchdog is exploring whether a rival operator should lead Heathrow's planned expansion, including the long-stalled third runway. The regulator wants to push down costs for airlines and investors. Heathrow's incumbent management is wary of a model that splits control over the country's busiest airport.

Aircraft taxiing on a runway at Heathrow Airport
Photo: Tristan Wong / Pexels
BBC Business50 min agoDG EZJ IAG

The UK Civil Aviation Authority said it is weighing whether part of Heathrow's large-scale expansion programme, including the long-delayed third runway, should be handed to a rival terminal operator. The regulator argues that the rise in investment costs in recent years is feeding through to per-passenger charges and that competitive pressure could ease that.

Heathrow Airport Holdings counters that a single-operator model is more efficient. Management says terminal-level competition could complicate ground handling, baggage flows and security operations. Possible suitors named in the press already include Manchester Airports Group and France's VINCI.

The proposal could also unlock the third runway project that Heathrow has shelved for years. The UK Treasury is interested in the new model because it wants both fresh capital and more airspace capacity. The CAA's formal consultation runs into the summer, and a final decision has been pushed into early 2027.

RegulationTradeDGEZJIAGEuropeBBC Business
This article is an AI-curated summary of the original story published by BBC Business. The illustration is a stock photo by Tristan Wong from Pexels and is not from the original story.

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