“Outrageous” costs sees Willie Walsh and IAG refuse to back third runway at Heathrow

Willie Walsh, International Airlines Group (IAG) CEO, has made it clear he will “not be supporting” the Airports Commission’s proposals for a third runway at Heathrow, as he believes the costs for its creation are “outrageous.” His principal problem with the proposal for a third runway is based on the financial aspect as he cannot see how the whole project could be financed, saying “There is a major issue to address in terms of the cost of this infrastructure and I fail to see how the airport will be able to finance it, given the impact that it would have on the operating costs of Heathrow. You are talking about extremely expensive infrastructure that will not be fit for purpose, and I don’t think it’s right that we lock future generations into inefficient, expensive infrastructure. We think the costs associated with this are outrageous and we will not pay.”
Stewart Wingate, Gatwick Airport’s CEO, is reported as saying that “It is no surprise British Airways has come out today against expansion. For the huge costs of a third runway at Heathrow, you could build [a second runway at] Gatwick, have all the benefits, and billions left to invest around the country. One month on and the [final report of the Airports Commission] is unraveling fast.”
Wingate also pointed out that buried deep in the report was the indication that despite claims a third runway at Heathrow would see further UK cities being connected to the airport, the current plans show that it will in fact reduce the number to just four cities. He made it clear that the “revelation that a third runway would reduce, rather than increase, domestic connections to the UK … blows a hole straight through the heart of Heathrow’s central claim to be the airport for the whole of the UK.”
Walsh has long believed that there would be no third runway at Heathrow and has instead set his sights on establishing a new hub in Dublin, which ties in with AIG’s current acquisition of Aer Lingus.