In a major address delivered by the Chief Executive Officer of London-Heathrow Airport, Thomas Woldbye, on February 12, 2025, the airport announced the largest private investment program in Heathrow’s 79-year history and confirmed that the airport is developing proposals for a third runway to share with the UK Government by the summer of 2025.
The announcement comes just days after two of its leading carriers, British Airways and Virgin Atlantic published an open letter in The Times newspaper calling for more investment at Heathrow before any third runway is given the green light.
It is understood that the full details of the investment program, its phasing, and the pathway to a third runway will be part of Heathrow’s initial proposals submitted to the Government later in the summer of 2025, although the provisional plans set out by Woldbye in his speech will include new investment in:
- Terminal infrastructure: Heathrow will work with airlines and the regulator to finalize plans to invest in the capacity of Terminal 2 and make changes to optimize and increase passenger capacity in Terminal 5.
- Improving customer experience and punctuality: Reconfigure and improve the layout of the airfield, increasing the number of aircraft stands, to improve resilience and punctuality.
- Local transport connections and sustainable travel: The investment program includes plans to further improve bus and coach connections to encourage sustainable and active travel options and benefit our local communities.
- Sustainability: New infrastructure will have improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy.
This privately funded program to transform Heathrow’s current infrastructure, with tangible benefits due to be felt “as early as 2025”, will start with projects within the airport’s existing boundary and work towards a third runway.
According to a Heathrow statement, “The plans will help the airport become more efficient, more reliable, and more sustainable for all passengers and airlines at Heathrow. These new investments build on the £2.3bn ($2.9bn) accelerated investment announced by Heathrow in December 2024 to improve service, resilience, passenger experience, and sustainability through multiple projects over the next two years.”
“Heathrow’s once-in-a-generation phased investment program for airport modernization and expansion will create transformational opportunities for UK businesses and industries, during this Parliament and beyond,” added the statement.
“This privately funded program will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the Chancellor’s call to get Britain building,” commented Woldbye. ”A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to the Government this summer.”
“Ahead of then, as part of a phased expansion program and supported by the Government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability. This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth,” Woldbye concluded.
On February 10, 2025, the CEOs of British Airways and Virgin Atlantic jointly wrote to the UK Government seeking an “urgent and fundamental review” of its decision to construct a third runway at Heathrow. The airline pairing is seeking the aviation regulator to step in and act over what the carriers term spiraling costs at the airport, and warning that any expansion would ultimately be paid for by passengers.