The green light from the UK government to build the runway is a significant development and came amid a swathe of announcements on other infrastructure projects in a speech made on Wednesday to push for economic growth.
Often slated as one of the world’s most expensive and controversial aviation projects. Heathrow has asserted the GBP14 billion expansion is needed to maintain the UK’s position as a global aviation hub and to keep up with the projected growth in tourism and business travel. The airport has dropped from being the busiest of international airports to 14th in the world. It has been taken over by the likes of Dubai and Istanbul, both of which have finished and opened new airport hubs while the UK has been dithering over Heathrow’s expansion.
Since 2003, the airport has said its terminals and runways are running near capacity. In 2024 the airport reported that 83.9 million passengers (4.7 million more than in 2023 and 3 million more than in 2019) had travelled through its terminals. In addition, the airport currently has no free landing slots available, with carriers having to acquire slots from other airlines.
Runway oppostion
The expansion of Heathrow has long been opposed by green groups and activists, who have argued that developing a new runway is incompatible with the UK’s net zero targets due to the lack of widely available sustainable aviation fuel (SAF) as an alternative to fossil-based fuel for powering aircraft.
In response to this opposition and according to a report on BBC news, Reeves claimed at the weekend that “a lot has happened in aviation,” since plans were first initiated for the new runway. She highlighted that sustainable aviation fuel (SAF) would help reduce decarbonise operations by reducing carbon emissions and that there was significant investment going into electric aircraft, while a third runway would mean fewer planes circling overhead.
AirportsUK chief executive, Karen Dee, added her support for the expansion project asserting the chancellor is right to get behind airports as key engines for economic growth and to prioritise policies that can help deliver additional global connectivity.”
She also noted, “Airports make an enormous contribution to the economy, connecting businesses, facilitating imports and exports, bringing in investment and creating jobs.
“Expanding capacity will support growth in all these areas and will not come at the expense of our sustainability goals.
“New, cleaner fuels, more efficient and quieter aircraft, decarbonised airport operations and modernisation of our airspace will ensure aviation is able to meet its obligations, alongside growth.”
Engines of economic growth
In terms of the UK’s economy, the latest analysis for AirportsUK by economic analysts Steer, found that airports contribute over GBP27bn and 1 million jobs. These numbers increase to GBP53bn and over 660,000 jobs when airlines are added and to almost GBP65bn and 1 million jobs when tourism and international students are factored in.
The study also found that almost GBP100bn of UK GVA depends on air freight, representing 4.3 per cent of the total measure of UK output.
“Sectors as diverse as transport equipment, pharmaceuticals, the creative industries and clothing rely on good air links, to the tune of billions of pounds of value,” continued Dee.
“Growing connectivity into global markets will support these sectors and countless others, creating jobs, bringing new customers to our goods and services and opening new opportunities for investment.”
Regional impact
Commenting on the regional impacts, Dee concluded: “Aviation’s contributions are also shared across the entire country, with all regions of the UK benefitting through increased trade opportunities brought about by better connectivity.”
Image source: London Heathrow