IAG criticises Heathrow’s expansion plans, says poor deal for consumers

Thursday, August 22, 2019

 According to Willie Walsh, chief executive of IAG,  Heathrow airport bosses were untrustworthy and mentioned that they were in a ‘gravy train’.

Heathrow motivated by a desire to maintain British Airway’s dominance at the airport said that Walsh was using ‘misleading rhetoric’.

Walsh has criticised plan by the airport’s management to spend £3.3bn on preparations for a third runway before the planning permission was granted. He further showed no confidence in Heathrow’s ability to rein in expansion costs and some of Walsh’s criticisms were contained in a submission to the Civil Aviation Authority (CAA).

Walsh had warned about the costs of the third runway and stated that the advance costs were spiraling out of control and total expansion costs were being covered up.

The latest development proves that Heathrow cannot be trusted. BA will be affected as the increase in cost of expansion would be passed on by raising landing charges.

Walsh strongest point was the allegations that Heathrow executives were deliberately concealing the true cost of a third runway and its supporting infrastructure.

Walsh mentioned that Heathrow is on a massive gravy train and will do everything to protect that. They had  absolutely no confidence in its ability to deliver cost-effective expansion.The total bill for expansion is already running at £32bn and yet they are trying to deceive everyone by continuing to claim that it can be done for £14bn.

The aviation regulator CAA received submission from IAG to oversee Heathrow effectively and prevent the airport from ‘steamrolling’ through massive cost increases.

Heathrow told the CAA that pre-planning permission costs were £915m and was now been ramped up to £3.3bn.

John Holland-Kaye, the airport’s chief executive thinks that the expansion was a fait accompli and considering the judicial, environmental and political hurdles ahead there’s no guarantee.

It is complete unacceptable for passengers to pick up the tab and irresponsible to spend £3.3bn before receiving planning permission.

A Heathrow spokesperson said that the estimate of  cost of expansion had not changed and it was exactly the same as they submitted in 2050 to the Airports Commission. IAG’s misleading rhetoric won’t change history.

The future will see huge increase in competition among airlines and choice for passengers that we will deliver by expanding Heathrow.

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