London’s Heathrow airport outlined revised plans for a new runway it said will create 100,000 jobs and add 100 billion pounds ($168 billion) to the economy as rival Gatwick restated its case for getting the landing strip.
London’s Heathrow airport, hemmed in by urban sprawl and barred from adding a new runway, is turning to bigger jets and glitzier shops to keep growing in the face of a campaign to build a rival hub on the Thames estuary.
BAA Ltd. ’s London Heathrow airport may become less competitive against other European hubs and demand for long-haul leisure flights to the city may be hurt because of rising U.K. tax, Chief Executive Officer Colin Matthews said.
Heathrow Airport Ltd. snapped five years of annual losses in 2013 as Europe’s busiest aviation hub attracted bigger jets to boost passenger numbers and booked gains from the sale of its London Stansted terminal.
Heathrow Ltd. said it’s exploring plans to shift the site of a proposed third runway in an effort to minimize the impact of construction work as Europe’s busiest hub ramps up efforts to win support for its expansion.
Limited capacity at London’s Heathrow Airport costs the U.K. as much as 14 billion pounds ($22.2 billion) a year in lost trade as other European hubs boost connections to growing economies like China and Peru, the airport operator said.
The U.K. aviation regulator’s proposal to cap fees charged by London’s biggest airports over the next five years risks driving away investors, threatening plans to ramp up runway capacity, Heathrow Airport Ltd. said.
BAA Ltd., the owner of London’s Heathrow and Stansted airports, narrowed its first-half loss as traffic was spurred by growth in emerging markets and an alliance between British Airways and American Airlines.