The Parliament on Monday has backed a controversial plan to build a third runway at Heathrow, Europe’s busiest airport. MPs backed the government’s proposal which argues the controversial £14 billion expansion will boost Britain's post-Brexit economy, by 415 votes to 119. The Arora Group is competing with the airport company, Heathrow Airport Limited (HAL) for expansion development rights.
This group, which is the largest landowner in the area marked for expansion, has provided alternative proposals for the expansion in early May. Known as the ‘Western Hub’, the Arora Group promises to design the new terminals to provide capacity for over 50million additional passengers and transform passenger experience and efficiency. The estimated cost of Arora’s airport expansion plans to full capacity is £14.4bn. The competing scheme, from HAL allegedly could be more than twice this sum at £31bn, according to an Airport Commission report. The costs of airport expansion will be passed on to airlines and passengers and Heathrow is already one of the most expensive airports in the world.
Surinder Arora, Founder & Chairman, Arora Group speaking to Asian Voice said, “The stamp of approval from MPs for Heathrow expansion is a vital further step – but there now needs to be an independent process to determine who can best deliver each element of the expansion. Arora’s plans to deliver the full extra capacity via a Westerly campus deliver significant cost savings and break the current monopoly, which overcharges airlines and passengers. Costs must be kept down for the expansion to work and Heathrow’s track record should be a cause for concern.”
The Confederation of British Industries (CBI) reportedly hailed this vote as a “truly historic” decision, saying it will “open the doors to a new era in the UK’s global trading relationships.” Foreign secretary Boris Johnson, who had previously said he would "lie down in front of the bulldozers" if the plans went ahead, has faced criticism for not being present during the vote in Parliament and was visiting Afghanistan at the same time.
The Oxford Economics, reportedly highlighted the value of international business travel, emphasising in a research with GTMC, that the average international business travel air trip triggers a £34,000 contribution to gross domestic product.
Local MP for Ealing and Southall, Virendra Sharma in a statement earlier this month said, “The airport has worked closely with local residents in developing proposals that will deliver significant benefits to the local economy, and minimise the impact on Heathrow’s neighbours. If they stick to the deal we have then Heathrow will deliver sympathetic sustainable growth in the local area for decades. Thousands of young people in my constituency will have access to high quality jobs and rigorous apprenticeships to qualify them for the jobs. An expanded Heathrow is not just an airport for West London, it is a nationwide and worldwide hub, with more flights in and out of Heathrow we can expect more direct flights to India and other increasingly important UK trade partners. The government is investing in a global Britain."
However, the decision is set to face a legal challenge from a cross-party group of London councils, London’s Mayor Sadiq Khan and Greenpeace UK. Khan reportedly said that despite the vote being the “wrong decision” for Londoners, it did not represent the end of the fight. “I’m joining the legal action brought by local authorities in opposition to Heathrow expansion,” he said.
Tory councillor Ravi Govindia, leader of Wandsworth, reportedly said the third runway proposal would not survive “independent, lawful and rational” scrutiny in the courts.
Stephen Cowan of Hammersmith and Fulham told newspapers: “We absolutely refuse to sit back and let such a potentially catastrophic decision be made without a fight. If we need to take legal action, we will.”
The councils have six weeks to challenge the decision through judicial review if the government formally designates the national planning statement supporting the third runway.
Comments in support of Arora Group
Airlines operating from Heathrow have consistently voiced concerns about HAL’s ability to undertake Heathrow expansion in a cost-effective manner and have called for competitive principles to be adopted to ensure that expansion is undertaken by the best party and to ensure that it is a success. Airlines have therefore welcomed the Arora’s proposals.
Sir Rod Eddington, former British Airways CEO and member of the Arora Group Heathrow Expansion Advisory Board, supporting the Arora Group’s expansion plan said: “Heathrow used to be the premium global aviation hub but has suffered under the current monopoly, which has seen it drop below other European airports. Arora is best placed to deliver true competition and return Heathrow to its place as the top-tier international airport, which is critical in a post-Brexit Britain.”
Jonathan Massey, Principal of Corgan’s Aviation Studio, commented: “Our plans maximise the site’s potential, incorporating a large number of gates next to T5, reducing passenger connect-times, and including an integrated public transport hub as part of an innovatively designed ‘central processor’ core area, to develop the best operational solution for Heathrow.”
A spokesperson from International Airlines Group (IAG, the parent company of British Airways, Aer Lingus, Iberia and Vueling) said: “Competition at Heathrow is critical to keeping costs low and we call on the Government to break up the airport’s monopoly and allow third parties to run terminals. The Arora proposal looks very interesting and deserves to be properly evaluated so that customers can get the best facilities at the most affordable price”.
Craig Kreeger, CEO, Virgin Atlantic, said: “Heathrow expansion is a once-in-a-generation opportunity to challenge the status quo and build the right airport for the future. Arora have developed a plan that will bring down the cost of construction and inject competition at the UK’s hub airport. At first look, this plan appears to be a credible alternative. Virgin Atlantic believes passionately in the benefits of competition to consumers, so we urge all involved in Heathrow expansion to give the Arora plan serious consideration.”
Mr Arora said: “Our approach has been to work closely with airlines and to employ the world’s best and most experienced airport designers and these benefits are clearly evident in our Western Hub plans. Heathrow has been in monopoly control for too long and our proposals show what can be achieved through an alternative approach and Heathrow fully welcoming competition.
“We welcomed the consultation from the CAA. It is helpful to have talks in place and we are eager to work with all parties to realise the best solution for Heathrow.
“We are passionate about developing a Heathrow that delivers a truly world-leading experience; one that works for airlines; one that offers passengers a top-class journey; and one that has the commercial grounding to be a long-term success for the nation to take pride in.”
