Heathrow unveils own plans for third runway following billionaire’s rival bid

London-Heathrow Airport (LHR) has unveiled its own plans for a third runway, following a rival submission from billionaire Surinder Arora. 

Heathrow’s ‘shovel-ready’ proposal was made public on August 1, 2025, after the government’s deadline for prospective plans passed on July 31, 2025.  

According to Heathrow, the 100% privately financed proposal for a third runway could be delivered within a decade for $27.7 billion (£21 billion), allowing for 750 additional flights a day into London.  

The true cost of the plan is around $64 billion (£49 billion), with an additional $15 billion (£12 billon) required for a new terminal and stand capacity named T5X, plus $19 (£15 billon) for modernizing the current airport with the expansion of Terminal 2 and closing of Terminal 3. 

Under the proposal a 3,500-meter north-western runway would be constructed, as well as an extension to the airfield, new taxiways and all associated airside infrastructure.   

alice-photo / Shutterstock.comConstruction would also involve realigning the M25 motorway and building a bridge enabling traffic to pass under the new runway.  

A similar previous bid by Heathrow for a third runway was priced at $18 billion (£14 billion), but according to the airport the cost has risen due to construction inflation. 

“It has never been more important or urgent to expand Heathrow,” said Heathrow CEO Thomas Woldbye. “We are effectively operating at capacity to the detriment of trade and connectivity. With a green light from Government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilize and start investing this year in our supply chain across the country.”  

He added: “We are uniquely placed to do this for the country; it is time to clear the way for take-off.” 

The announcement of Heathrow’s bid follows that of a proposal by The Arora Group, which is owned by hotelier Surinder Arora, on July 31, 2025. 

Arora Group The ‘Heathrow West’ plan includes a new modernized terminal, Terminal 6, and a 2,800-meter runway – something that would cause no disruption to the M25.  

According to the BBC, The Arora Group’s plan would cost under £25 billion, not including the renovation of Heathrow ‘s existing central area. 

Working in partnership with experienced airport constructor Bechtel, The Arora Group claimed that the runway could be operational by 2035. 

Surinder Arora said: “After a decade working with our world leading design and delivery team, I am very proud that the Arora Group can finally unveil to the UK Government our Heathrow West proposal, which directly meets and supports the United Kingdom’s primary objective of unlocking economic growth at the UK’s only hub airport, with a strong commitment of doing so on-budget and on-time.”  

Following the unveiling of rival plans, Heathrow noted that it was speaking with airlines about the possibility of a shorter runway, but believed its current proposal was the most cost-effective and deliverable plan.  

The Times has suggested that other proposals were put forward to build Heathrow’s new runway, but no such plans have yet been disclosed. 

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