The UK Transport Select Committee recently endorsed Heathrow Airport as the correct location to expand airport capacity, a decision supported by the International Air Transport Association (IATA).
The committee also said the British government should give the Civil Aviation Authority more power to regulate Heathrow’s airline and passenger fees.
Both the committee and IATA, however, do have some concerns as the cost could become extreme and operational flexibility could be compromised.
Heathrow has the world’s highest airport fees. IATA said the airport should make a commitment not to increase fees beyond the current level.
Some proposals would damage the economy, such as banning early morning flights.
Expansion also impacts the local community by increasing noise.
Parent company Heathrow Airport Holdings (HAL) “have suggested a cost in the region of 14-17 billion pounds ($19.9 billion-$24.2 billion) to build the third runway – around double the cost of the London Olympics,” Rafael Schvartzman, IATA regional vice president for Europe, said. “And HAL (has) not been clear on the funding of critical works such as the proposed building of the M25 (motorway) and the relevant surface access schemes. The only way these concerns can be addressed is to ensure that there is much greater transparency on the cost of construction.”