U.K.'s Heathrow Starts Picking Design, Engineering Teams for Third Runway

By Robert Wall

LONDON--London Heathrow airport has kicked off the process to pick design and engineering teams to help build a third runway as it awaits a decision by the British government on whether to back plans to expand Europe's busiest hub.

Over the summer a government-appointed panel recommended a third runway at Heathrow was the preferred way to add aviation capacity in the southeast of England amid concerns that growth could be stifled by inaction. A rival proposal by Gatwick Airport to add a second runway was rejected.

The U.K. government has said it would make a decision on the plan, which could cost more than $35 billion including surface access costs, before year-end.

Heathrow Airport Chief Executive John Holland-Kaye said on Wednesday he still expected a decision from the government on the promised timeline and that he was making preparations to begin work once the approval has been given. "We have been lining up our supply chain and we have been getting on with the early phases of planning," he said in an interview.

Heathrow has started the process to pick organizations that can assist with planning, engineering and design of the mega-project, which will take up the first two to three years of work. "That will allow us to get on with the planning phase early in the new year," he said.

The scale of the infrastructure project, coming at a time the U.K. also is looking to build a large high-speed rail line, called HS2, means early planning is required to assure the same engineering resources aren't being called on at the same time. Heathrow plans to start building the third runway in around 2020 with the goal of completing the project about five years later.

Expanding Heathrow remains politically contentious. London Mayor Boris Johnson and others are opposed to the move, with Gatwick, located south of London, still lobbying the government to favor its expansion over Heathrow.

To alleviate local concerns, the airports commission led by Howard Davies recommended a number of restrictions for an expanded Heathrow, including a ban on overnight flights and ruling out a fourth runway. Mr. Holland-Kaye said the airport would make its views on those issues known later, though added that none of them was a "show stopper."

Heathrow on Wednesday also reported nine-month results in which sales grew 4.1% to GBP2.1 billion ($3.22 billion) on 2.3% growth in passenger numbers to 56.9 million in the January through September period.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

October 28, 2015 07:06 ET (11:06 GMT)

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