British Airways, Virgin Atlantic attack UK Government over Heathrow third runway

Executives running two of Britain’s largest long-haul carriers which equate to a substantial proportion of aircraft and passenger movements at London-Heathrow Airport (LHR) have jointly written to the UK Government seeking an “urgent and fundamental review” of its decision to construct a third runway at London’ busiest airport gateway. The airline pairing is seeking the aviation regulator to step in and act over what the carriers term spiraling costs at the airport, and warning that any expansion would ultimately be paid for by passengers.

In an open letter published by The Times newspaper on Monday, February 10, 2025, the Chief Executives of British Airways and Virgin Atlantic, Luis Gallego and Shai Weiss respectively, state in their joint letter that, “With runway expansion being drawn up, the scale of investment means that passenger charges will rise again. There must be wholesale reform, which is necessary and achievable without delaying spades in the ground.”

The airlines claim that Heathrow’s regulatory model “actively encourages inefficient overspending and leads to the highest charges in the world, leaving passengers paying more for less. “This incentive to spend inefficiently has resulted in more than £15 billion ($19 million) of capital expenditure in the past two decades, which has led to charges doubling in real terms. This is far more than among its peers.”

“Heathrow’s price increases meant that in 2024 passengers and airlines paid £1.1 billion ($1.4 billion) more than if its charges were in line with other big European airports. In return, they get a declining experience and an aging infrastructure. For too long the regulatory model’s failure to constrain the monopoly has harmed consumers, led to squandered spending, and diminished Heathrow’s hub status and competitiveness.”

“With the prospect of expansion, which would be paid for by passengers, it is now time for the regulator to take action. This is why we have come together to submit our joint proposal to the Civil Aviation Authority for an urgent and fundamental review of Heathrow.”

Ceri Breeze / ShutterstockThe signatories to the letter were joined in their vociferous calls for a root-and-branch of costs at Heathrow by  Nigel Wicking, who leads the Heathrow Airlines Operators’ Committee (AOC), as well as Surinder Arora, an individual who operates several hotels under the Arora Hotels brand at the airport.

The letter adds, “As Britain’s only hub airport, Heathrow should offer an exceptional experience for passengers but today it is the most expensive airport in the world, with a service that falls well short. We believe that Heathrow can achieve much more for Britain. Record-breaking passenger numbers, an airport at near-full capacity, and the prospect of a third runway all mask the fundamental problem with Heathrow.”

“It is now time for the CAA to investigate what has gone wrong before passengers and airlines get locked into higher charges for decades to come. It is more than 15 years since the last detailed review, undertaken by the Competition Commission. An airport that has been the most expensive of its peers for a decade but has failed to modernize at the same pace is a clear sign of the failure of the regulatory system.”

BasPhoto / ShutterstockCiting European competitors

The airline bosses continue in their letter by citing how other major international airports across Europe have already realized the opportunities already available to them to stimulate economic growth in what they term “more efficient ways”.

“New terminals at Munich, Frankfurt, Madrid, and Barcelona have all cost half or less, when adjusting for terminal size than the upgrades to Heathrow Terminals 2 and 5. If Heathrow is to expand and build a third runway, it cannot continue to gold-plate its construction costs and spend inefficiently. As UK-based carriers and businesses, we of course support sustainable growth and expansion but only if it is affordable and offers value for money to UK plc.” 

“The time to act is now,” the letter continues. ”The regulatory model is not fit for purpose. We are asking the regulator to undertake a fundamental review of Heathrow: the first step towards a reimagined Heathrow that delivers for consumers, the government’s growth agenda, and the country. For Britain to remain competitive, Heathrow must be an efficient option for those connecting passengers,” the letter concludes.

What does Heathrow say?

A Heathrow source told Travel Weekly that Heathrow’s management has already told airlines and the government that it would propose to look at a different, longer-term regulatory model for a third runway. However, as with any other good or service that consumers buy, those who use that service or product have to pay for the cost of providing or producing it as is the case today.

Ceri Breeze / ShutterstockWhile Heathrow is clearly not ruling out the passing of charges involved in expanding Heathrow to airline users and ultimately, the traveling public, the airport owners state that they are keen to run a transparent process and work in partnership with airlines, the regulator, and ministers to put in place a model that “delivers the benefits of expansion for the UK as quickly as possible.”

However, with any new runway not expected to open and see the first aircraft using its tarmac much before 2040, there is a great amount of distance left to run in this matter. The next step of the process will be for Heathrow Airport Limited to file a planning application for the third runway by the summer of 2025. This will be the first step down a long path that may or may not, result in a third runway being built. With the concept having been mooted for many years already, the outcome is still far from certain.

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