IAG slams Heathrow Airport and says expansion a “massive gravy train”

posted on 22nd August 2019 by Justin Burns
IAG slams Heathrow Airport and says expansion a "massive gravy train"

International Airlines Group (IAG) has slammed Heathrow Airport’s growing third runway expansion costs and chief executive Willie Walsh, said it is a “massive gravy train”.

In a submission to the Civil Aviation Authority (CAA), IAG explained it had “absolutely no confidence” in Heathrow’s ability to deliver cost-effective expansion.

IAG said initial construction and planning costs, originally forecast at £915 million, have jumped by more than 250 per cent in two years and added “Heathrow continues to cover up the true cost of expansion”.

IAG is the parent company of IAG Cargo, which sells cargo capacity on the belly networks of British Airways, Iberia, and Aer Lingus.

The airport says expansion will cost £14 billion. Initially that covered both the runway and additional terminal and aircraft stand capacity. However, its latest masterplan says that now only builds the runway. The total cost is £32 billion.

IAG chief executive, Willie Walsh said: “Advance costs are spiralling out control and total expansion costs are being covered up. This latest development proves beyond doubt that Heathrow can’t be trusted. 

“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 before receiving planning permission is irresponsible and it’s completely unacceptable to expect passengers to pick up the tab. 

“Heathrow’s on a massive gravy train and will do everything to protect that. We have absolutely no confidence in its ability to deliver cost-effective expansion.

“The total bill for expansion is already running at £32 billion and yet they are trying to deceive everyone by continuing to claim that it can be done for £14 billion.”

IAG’s submission urges the CAA to regulate Heathrow effectively and stop the airport from steamrolling through massive cost increases.

Walsh added: “Heathrow told the CAA that pre-planning permission costs were £915 million. They’ve now been ramped up to £3.3 billion. The airport is treating customers with contempt and the CAA like puppets.”