Heathrow Airport Expansion

Heathrow Airport, Britain’s largest aviation hub, is preparing for a massive expansion that will cost almost £50bn. The expansion plan includes a £21 billion third runway, £12 billion for a new terminal and stand capacity, and £15 billion to modernize the current airport by expanding Terminal 2. The existing Terminal 3 would ultimately be closed.

New Chairman Nomination

Former BT Group boss Philip Jansen has been nominated as the next chairman of Heathrow Airport. Mr. Jansen is in advanced talks with the Heathrow Board of Directors and shareholders about taking on the role. If the talks reach a successful conclusion, an announcement could come within weeks. Mr. Jansen’s experience as head of BT, a regulated energy supplier, is said to have been key to his selection as the preferred candidate.

Expansion Plans

Heathrow handled a record 83.9 million passengers in 2024 and believes a third runway is vital to the growth of the UK economy given the volume of exports handled through the site. The airport’s chief executive, Thomas Woldbye, said, "It has never been more important or more urgent to expand Heathrow. We are effectively operating at our capacity limits, to the detriment of trade and connectivity." The expansion plan has been backed by the government, with the chancellor saying a third runway would "enable further growth, boost investment, increase exports and make the UK more open and connected."

Opposition to Expansion

Many airlines continue to oppose the expansion and are concerned about the likely increase in fees for using the airport. However, the government has given its support, and the airport is ready to mobilize and begin investing in its supply chain across the country.

New Ownership Structure

Heathrow’s search for a new chairman comes months after the most significant changes to its ownership structure in years. Ardian, a French investment group, now owns 32.6% of the company following a series of transactions in the last 12 months. The Saudi Arabia Public Investment Fund has also become an investor.

Transition Phase

The appointment of a successor to the current chairman comes at a critical time for Heathrow. The current chairman, Lord Deighton, has agreed to extend his role for a limited period to ensure continuity and stability on the board during the transition phase. A Heathrow spokesman declined to comment on the nomination of Mr. Jansen, while Mr. Jansen could not be reached for comment.