Heathrow Wins Third Runway
October 25, 2016
The UK government has chosen Heathrow Airport over a competing proposal by Gatwick as the location of next runway in the United Kingdom.
The decision was made today at a meeting of a Cabinet subcommittee chaired by British Prime Minster, Theresa May, and approved later in the day by the Cabinet.
The government said that expanding Heathrow would be a major boost for the UK economy.
The Transport Secretary Chris Grayling, said a new runway at Heathrow will bring economic benefits to passengers and the wider economy worth up to £61 billion. Up to 77,000 additional local jobs are expected to be created over the next 14 years and the airport has committed to create 5,000 new apprenticeships over the same period.
"A new runway at Heathrow will improve connectivity in the UK itself and crucially boost our connections with the rest of the world," he said, "supporting exports, trade and job opportunities."
Expansion at the airport will better connect the UK to long haul destinations across the globe and to growing world markets including in Asia and South America, bringing a significant boost to trade. Heathrow already accounts for 31% of the UK’s non-EU trade, and the government said its expansion will create more opportunities for UK business to get their goods to new markets.
There will be a public consultation period and then the decision will be put to a vote by the UK Parliament.
The government said that expansion costs will be paid for by the private sector, not by the taxpayer.
The shareholders of Heathrow are affiliates of Ferrovial S.A. (Spain), Qatar Investment Authority (Qatar), Caisse de dépôt et placement du Québec (Canada), GIC Private Limited (Singapore), Alinda Capital Partners (USA), China Investment Corporation (China) and Universities Superannuation Scheme (UK).