London¡¯s Heathrow Airport is planning a multi-billion-pound investment to expand capacity at Terminals Two and Five, it was revealed today.

The privately funded expansion will deliver increased capacity at both terminals and improve the customer experience and punctuality through the reconfiguration of the airfield and addition of aircraft stands. Local transport connections will also be enhanced.

The plans were announced today ahead of the airport¡¯s submission to government this summer of detailed proposals for the addition of a third runway. The long-debated construction of a third runway was given the backing of UK chancellor Rachel Reeves last month to a mixed reaction from supporters and environmental groups.

¡°This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the chancellor's call to get Britain building,¡± said Heathrow CEO Thomas Woldbye.

¡°A third runway is critical for the country¡¯s future economic success, and I confirm we will submit our plans for a third runway to government this summer. Ahead of then, as part of a phased expansion programme and supported by the government¡¯s clear backing, I am today confirming multi-billion-pound investment plans, 100 per cent privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.

¡°This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country¡¯s crown ¨C the UK¡¯s gateway to growth,¡± added Woldbye.

However, Heathrow Reimagined, which represents the Heathrow Airline Operators¡¯ Committee, Arora Group, British Airways owner IAG and Virgin Atlantic, said in a statement that it ¡°wants an improved experience for passengers¡­ but not at any price.¡±

A statement issued by the group continued: ¡°The regulatory system at Heathrow has encouraged inefficient spending and has failed to provide value for money to passengers, who will ultimately foot the bill through higher passenger charges.
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¡°Heathrow is already the world¡¯s most expensive airport and today¡¯s announcement does not demonstrate where passengers will see value for money.¡±

The Heathrow Reimagined group was formed recently to lobby the Civil Aviation Authority to conduct an ¡°urgent and fundamental review¡± into the way in which the airport is regulated, claiming it is the most expensive airport in the world, with customers paying ?1.1 billion more than if charges were in line with other major European airports.