Lead

Passengers at Heathrow face decades of higher fares after the airport was given permission to recover early costs from developing its expansion plan. The Civil Aviation Authority (CAA) announced it had permitted Heathrow Airport Limited (HAL) to recoup £320m spent on its proposal to build a third runway since the start of last year. The money will be recovered through higher airline charges, which are typically passed on to passengers in air fares, over roughly 20 to 25 years.

The CAA said its decision would increase the maximum airport charge per passenger by about 15p in 2028, rising to an estimated 30p in subsequent years. British Airways, the largest airline at Heathrow, warned that early cost recovery by HAL would create a risk that expansion would be “unaffordable for consumers and inconsistent with a credible benefits case”, according to a CAA document. Airlines have repeatedly complained that Heathrow has the highest charges of any airport in the world.

Separately, an analysis of the government’s own forecasts suggests that expanding Heathrow could take thousands of jobs from other regions of the UK. The New Economics Foundation (NEF) said the report, published by the Department for Transport last month, showed that airports in England and Wales are likely to lose millions of passengers if Heathrow builds a third runway.

Coverage Comparison

The Guardian reported on two distinct aspects of the Heathrow expansion story. One article focused on the regulatory decision allowing Heathrow to recover early planning costs, detailing the CAA's announcement, the impact on passenger charges, and airline reactions. Another article examined the regional economic consequences, citing analysis by the New Economics Foundation and referencing government forecasts, with a critical tone regarding the displacement of jobs and economic benefits.

Key Claims

  • Heathrow Airport Limited is permitted to recoup £320m spent on its expansion plan, with costs recovered through higher airline charges passed on to passengers.
  • The maximum airport charge per passenger will increase by about 15p in 2028, rising to an estimated 30p in subsequent years.
  • British Airways warned that early cost recovery would create a risk that expansion would be “unaffordable for consumers and inconsistent with a credible benefits case.”
  • Airlines have complained that Heathrow has the highest charges of any airport in the world.
  • Expanding Heathrow would take thousands of jobs from other regions of the UK, with Birmingham airport set to lose 7.5 million passengers a year by 2050, equating to about 9,500 jobs foregone.
  • The NEF analysis suggests that jobs created at Heathrow would primarily represent jobs displaced from around the country, with 15,200 regional aviation jobs and 6,400 jobs at other London and south-east airports going to Heathrow by 2050.
  • The government said that Heathrow expansion would bring benefits nationwide, but the NEF analysis focuses on a limited period.
  • The overall GDP impact from Heathrow expansion would be only up to 0.05% per year, according to DfT modelling.

Perspectives

Civil Aviation Authority: The CAA defended its decision, with Tim Johnson stating it “strikes a balance between supporting the delivery of benefits to consumers through timely progress on Heathrow expansion, whilst also protecting them from undue increases in costs.” The authority noted that recoverable costs are capped, independently scrutinised, and subject to efficiency reviews.

British Airways: The airline warned that the cost recovery could make expansion unaffordable for consumers and inconsistent with a credible benefits case.

New Economics Foundation: The think tank argued that the jobs created at Heathrow would primarily displace jobs from around the country, criticising the regional economic impact.

UK Government: The government insisted that Heathrow expansion would bring benefits nationwide, though it acknowledged the NEF analysis but said it focuses on a limited period.