Heathrow tells the CAA it would invite independent experts to scrutinise and advise on key expansion governance boards as part of robust and transparent regulation for the country’s largest privately funded transport upgrade
Heathrow expansion will deliver more competition, more choice and add £17bn a year to the UK economy each year. To realise these benefits as soon as possible requires regulation that can meet the pace and ambition of the Government’s plan for growth
As the CAA mulls options, Heathrow's proposals for greater transparency are built on proven foundations of integrated ownership and operation – essential for delivering expansion on time and entirely privately financed
Heathrow is inviting independent experts to oversee expansion in real-time, as it commits to deliver its plan responsibly. The UK’s only hub airport is confident its plan will deliver what the country and its customers need through efficient private investment.
Heathrow already has significant oversight of its investments; as a regulated airport its investments and day to day spending are already approved by the CAA and airlines, on top of robust reviews at key milestones and once work is complete to check for efficiency.
The new proposals for joint independent assurance create an expert panel that participates directly in Heathrow’s key decision making forums, checking its approach and giving independent advice and challenge to ensure the best outcome for consumers. It would comprise technical experts from areas like engineering, property, planning, legal, finance and procurement. Each would be jointly appointed by Heathrow and airlines, and approved by the CAA.
Crucially, it learns from the mistakes of previous megaprojects like HS2. Real-time independent analysis from experts in their field will allow Heathrow to adapt rapidly to live feedback, avoiding delays or cost increases from late-stage surprises. The panel’s input would be shared with Heathrow, airlines, the CAA and Government at the same time, giving full transparency.
Heathrow’s £33bn expansion plans are ready to move ahead with the right support from Government and the CAA. During construction it will see billions in private money flow into the UK-wide supply chain that will design and build it.
Once operational it will increase capacity up to 756,000 flights and 150m passengers, enjoying brand-new terminal facilities and more reliable journeys. By adding 50% more capacity, passengers will enjoy more choice, more destinations and see air fares fall through competition.
The next critical stage for this privately funded upgrade is getting certainty from the CAA on how expansion would be regulated. The only way Heathrow expansion can be delivered within the Government’s timelines and to the standard passengers expect is with a single airport operator.
Heathrow has already overseen two complex megaprojects on time and budget and today is delivering the world’s most efficient two-runway airport, best connected in the world, and Europe’s most punctual. Improvements to today’s regulated asset base model are still needed, including longer-term certainty, better incentives and the new independent oversight being put forward.
Heathrow’s Chief Customer Officer, Ross Baker, said: “We know our airline customers want a thriving expanded hub that delivers great operational performance and helps them grow their business, providing real value for money. As we partner to deliver expansion, we would also welcome independent experts to review our decisions real time giving the regulator and airlines even more assurance that we are building the hub our customers and country needs.”
