London Heathrow Airport has revealed a brand-new five-year plan that aims to improve its reputation across the globe, allowing it to better serve passengers, improve operational resilience and achieve growth for both airlines and UK businesses.
The new plan will be made possible via a 10 billion GBP private investment, allowing for stretching efficiency savings of more than 800 million GBP.
Devised over the last 12 months, the five-year investment plan’s development has seen input and collaboration from a number of key airline partners, as well as feedback from over 2 million passengers.
The infrastructure programme marks the airport’s most significant transformation in more than ten years, and will see the creation of new space within existing terminals equivalent in size to 10 football pitches, with resulting space making way for new lounges, shops and restaurants.
The transformation of the airport’s existing terminal spaces is also hoped to allow for a number of passenger experience improvements including 99% of bags travelling with passengers, 80% of flights departing on-time, 95% of passengers waiting less than five minutes at security and a step-change in service offering more choice for passengers requiring additional support.
Once complete, the upgrade is expected to increase passenger capacity by more than an extra 10 million passengers per year, a 12% increase in capacity, with cargo handling also set to receive an increase in freight capacity by 20%.
The airport is also planning a full redevelopment of its Central Terminal Area, with planning permission new being sought to demolish the old Terminal 1, build an extension to Terminal 2 and develop a new southern road tunnel to improve overall access.
The project is set to be delivered by a UK-based supply chain, 60% of which is based outside of London and the South East, with all funding being provided through private investment. A 2 billion GBP equity contribution from Heathrow shareholders will enable the investment plan to be delivered at lower costs, with Heathrow airport’s charge having dropped 23% over the course of the last decade.
Plans also include the removal of 3,000,000 tonnes of carbon from the airport (15% of 2024’s footprint), the provision of noise insulation for 6,500 homes and 15 schools, a 10% cut in waste and 20% rise in recycling and a new, sustainable energy supply that maintains 100% renewable electricity.
Commenting on the investment plan, Heathrow CEO Thomas Woldbye said: :We’re making good progress on our strategy to become an extraordinary airport – having become Europe’s most punctual major airport so far this year. But our customers want us to improve our international rankings further, as do we.
To compete with global hubs, we must invest. Our five-year plan boosts operational resilience, delivers the better service passengers expect and unlocks the growth capacity airlines want with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.
With Heathrow’s UK-based supply chain, this private investment will create jobs and drive national growth during this Parliament. We are ready to deliver the more efficient, sustainable Heathrow that will keep Britain connected to the world.
The plan will soon be both reviewed and evaluated by the CAA.
