The International Air Transport Association (IATA) has welcomed the UK Government’s renewed commitment to expanding Heathrow Airport, describing the move as a step in the right direction towards driving economic growth, boosting global connectivity, and strengthening the UK’s position as an international trade and tourism hub.
However, IATA cautioned that while the government’s ambition to move swiftly on Heathrow’s expansion could deliver short-term economic benefits through construction and employment, doing so without addressing affordability concerns could have long-term negative consequences for both passengers and airlines.
IATA’s Director General, Willie Walsh, said that the government’s goal of using aviation to stimulate the economy was “spot on,” but warned that the high cost of Heathrow’s current proposals under existing regulations could make the airport unaffordable.
“Heathrow’s long addiction to gold-plated construction costs has already earned it the unenviable standing as one of the most expensive airports in the world, if not the most expensive,” Walsh said. “The political haste to move quickly to capture the economic benefit of construction will seriously handicap the UK in the long term if it fails to build something that is affordable. So, intense caution is warranted.”
He emphasised that the Civil Aviation Authority (CAA), as the economic regulator, has a critical role to play in ensuring that Heathrow’s expansion is developed under strict cost-control measures. According to Walsh, this begins with ensuring transparency and competition in the construction process to determine both what will be built and at what cost.
Walsh also pointed to the upcoming national budget as a chance for the UK government to improve the competitiveness of its aviation sector by making Heathrow—and other UK airports—more affordable. He suggested that reducing or freezing Air Passenger Duty (APD) would be an “essential element” in supporting the long-term success of the airport’s expansion.
IATA reaffirmed its readiness to work with the UK Government, the CAA, and other industry stakeholders to ensure that Heathrow’s growth is not only ambitious but also sustainable, efficient, and beneficial to the entire aviation ecosystem.
The association stressed that an affordable and well-regulated Heathrow expansion would position the UK to reap long-term economic and social benefits, keeping it competitive in the evolving landscape of global aviation.
