Financial News

  • 14 May 2014, 10:40

Heathrow And Gatwick Reveal New Runway Plans

Heathrow and Gatwick airports have revealed updated expansion plans as they vie for the right to build a new runway for London.

While Heathrow said it would boost compensation to 550mfor those affected by its proposed third runway, Gatwick said its scheme would create more than 100,000 jobs and help keep fares low.

An alternative Heathrow option has also been submitted - by a former Concorde pilot - and known as Heathrow hub.

The Airports Commission had set a deadline of May 14 for the proposals to be submitted but a decision is not expected until next year, after the General Election.

Heathrow said it would pay 25% above market prices for 750 homes that would need to be demolished for a third runway, and improve noise insulation for others affected.

Its project is estimated at 15.6bn and would need 1.2bn of taxpayers' money, but would create 100,000 jobs.

A third runway would require a 2,000ft tunnel on the M25 orbital motorway, along with its widening to seven lanes in each direction between junctions 14 and 15.

The airport west of London saw its previous plan rejected in 2010, and has since suggested the imposition of a congestion charge for passenger drop-offs.

Gatwick gave a value of its expansion at 7.8bn and said it was more viable to build at its location, which is south of the capital.

It calculated that a new runway could be in service five years before a Heathrow alternative, would be cheaper, and see 120,000 jobs created.

Gatwick said the noise impact on the area would only affect 14,000 residents.

Meanwhile, Heathrow Hub said it had submitted its alternative scheme to the commission.

Its proposal is for no third runway to the north of Heathrow, but instead an extension west of the existing northernmost runway - taking it to 3.5 miles long.

It said the plan would possibly see an end to night quota flights and construction of a rail hub connected to the national network that would be able to handle 30 trains an hour.

It said the plan would provide up to 45bn to the UK economy, help create 19,000 jobs and see a new M25 junction built to ease traffic loads.

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