British Airways’ parent IAG has told the Civil Aviation Authority that it has ‘absolutely no confidence’ in Heathrow’s ability to deliver cost-effective expansion, claiming the initial construction and planning costs have jumped more than 250% in two years.
IAG claims that the original estimate for both the new proposed third runway and additional terminal and aircraft stand capacity was £14 billion, but now it claims that Heathrow’s latest masterplan shows the runway alone will cost that much and the total expansion will cost £32 billion.
In response to the CAA’s consultation on the expansion plans, IAG said it ‘s opposed to Heathrow’s proposal to make passengers pay £3.3 billion in advance costs for the third runway before planning permission is guaranteed. It said the initial pre-planning costs were originally forecast at just £915 million.
IAG chief executive Willie Walsh said: "Advance costs are spiralling out of control and total expansion costs are being covered up. This latest development proves beyond doubt that Heathrow can’t be trusted.
"The airport’s chief executive thinks expansion is a ‘fait accompli’ but with judicial, environmental and political hurdles ahead, there’s no guarantee. Spending £3.3 billion before receiving planning permission is irresponsible and it’s completely unacceptable to expect passengers to pick up the tab.
"Heathrow’s on a massive gravy train and will do everything to protect that. We have absolutely no confidence in its ability to deliver cost-effective expansion.
"The total bill for expansion is already running at £32 billion and yet they are trying to deceive everyone by continuing to claim that it can be done for £14 billion".
IAG said its submission urges the CAA to ‘regulate Heathrow effectively and stop the airport from steamrolling through massive cost increases’.
Walsh added: "Heathrow told the CAA that pre-planning permission costs were £915 million. They’ve now been ramped up to £3.3 billion. The airport is treating customers with contempt and the CAA like puppets".
