British Airways Owner Slams Spiralling Costs of Heathrow's 3rd Runway
IAG, the parent company of British Airways, hit out at the spiralling costs linked to the controversial construction of a third runway at London Heathrow, Europe's busiest airport. In a submission to Britain's Civil Aviation Authority, IAG accused Heathrow of trying to cover up the real costs and passing on the burden to airlines and, in turn, to passengers.
Mr Willie Walsh, chief executive, IAG said in a statement "Advance costs are spiralling out of control and total expansion costs are being covered up. IAG said the airport had originally put the cost of the expansion - both of the runway and the additional terminal and aircraft stand capacity - at GBP 14 billion. However, its latest masterplan says that now only builds the runway. The total cost is GBP 32 billion."
Mr Walsh said that "The airport's chief executive thinks expansion is a 'fait accompli' but with judicial, environmental and political hurdles ahead: there's no guarantee. Spending 3.3 billion pounds before receiving planning permission is irresponsible and it's completely unacceptable to expect passengers to pick up the tab."
IAG said it had "no confidence in Heathrow's ability to deliver cost-effective expansion." And its "submission urges the CAA to regulate Heathrow effectively and stop the airport from steamrolling through massive cost increases".
Source : Strategic Research Institute