The Heathrow Airport group has boosted its spending plans to £3bn over the next five years after passengers confirmed they would pay more to fund capital investment. Heathrow has now submitted its revised business plan to the Civil Aviation Authority (CAA).
The plan for the 2014-19 Q6 period would provide a £3bn construction boost after a survey found that the average passenger at Heathrow is willing to see charges rise by £23 over the next five years to fund airport improvements.
Heathrow was facing a cut to £2bn in Q6 under original plans submitted to the CAA. However, a combination of efficiency savings and the willingness of passengers to pay more could see an extra £1bn spent.
The plans include:
• New Terminal 2 - The Queen’s Terminal will open in 2014 allowing the closure of Terminal 1 in 2016.
• Valued airport products and services - develop premium retail and additional lounges.
• Better links - the airport will fund part of the Crossrail project to link Heathrow to the City of London, Canary Wharf and the East End
• Smoother journeys – with more self-service check-in kiosks & new self-service bag drops
• Improved efficiency
• Higher punctuality – with new airport management technology
• Quicker connections
• Quieter aircraft
• Reduced pollution
The CAA will publish final proposals in October 2013 for consultation before coming to a decision in January 2014.