Heathrow has hit back at airlines’ claims that its expansion plans would blow the £14.3bn budget and drive up charges, saying it was looking out for passengers and the local community and not to “protect the self-interest” of British Airways.



Airline executives, led by Willie Walsh of BA’s parent company, IAG, told MPs on the transport select committee this week that they should not trust Heathrow and warned that a “grossly off-target” budget could make the airport unaffordable.

But Heathrow’s chief executive, John Holland-Kaye, said he “completely rejected” Walsh’s comments that others could deliver a third runway and new infrastructure cheaper. He insisted that there was still “good collaboration behind the scenes” despite the stance of IAG, which operates more than half of the flights at Heathrow.

Holland-Kaye said: “Any airline at any time will complain about airport charges. That’s their main lobbying angle. Our job is not to protect the self-interest of our biggest customers. It’s to balance the interests of passengers, the local community and investors – not just protect the dominant customer.”

He said charges were a small part of the price passengers pay, adding: “Bring in more capacity and competition will bring fares down.”



Airlines have urged MPs to make a freeze on charges a condition of approving Heathrow’s expansion ahead of a vote in parliament due this summer. But Holland-Kaye said: “Look at the mess Carillion found themselves in by guaranteeing fixed costs they couldn’t deliver. It’s way too early. We said will keep costs close to current levels: that is a fantastic offer.”

He added: “Airlines were clear that Heathrow is the answer and they won’t go to Gatwick if [the third runway] doesn’t happen, they will go abroad.”

While record numbers of passengers (78 million) used Heathrow in 2017, Holland-Kaye said it was still losing out to competitors such as Paris, Frankfurt and Amsterdam. The possible relocation of Unilever’s headquarters to the Netherlands was “a vivid reminder”, he said. “When Heathrow was best connected in the world a lot of companies wanted to come here ... Brexit draws into sharp focus just how critical it is to have successful hub airport.”

Stansted airport will seek approval to expand its capacity to 43 million passengers a year by early in the next decade. Photograph: Joe Giddens/PA

Separately, Stansted has announced plans to expand its capacity to 43 million passengers a year. The Essex airport expects to hit its current permitted limit of 35 million early in the next decade, following rapid growth to 26 million in 2017 and long-haul flights to the US and the Gulf starting this year.

It has submitted a planning application to raise the cap, which it says can be achieved at current limits on flights and noise with quieter, larger aircraft.

Stop Stansted Expansion said the airport’s claim was “treating the local community as if we were all complete fools”.

But the airport’s chief executive, Ken O’Toole, said: “We have taken significant time to develop plans with extensive consultation. The feedback was we want a growing, successful airport but within the limits that you have.”