Heathrow Chairman Seeks Consensus on £49 Billion Third Runway as Government Backs Pre‑Election Start

Context Philip Jansen, appointed Heathrow chairman at the start of the year, has met with International Airlines Group, Virgin Atlantic and local billionaire Surinder Arora. Arora promotes his own £25 billion expansion plan and is part of the Heathrow Reimagined campaign, which pushes airlines to lower operating costs. A consortium led by Ardian, with sovereign wealth funds from Qatar, Singapore and Saudi Arabia, owns the airport.

Key Facts Experts put the third runway’s cost at £49 billion. Chancellor Rachel Reeves has pledged that construction will begin before the next general election. IAG chief executive Luis Gallego said the cost must be limited to £30 billion for airlines to support the plan.

What It Means If airlines cannot secure a cost near £30 billion, they may refuse to back the expansion, risking further delays. Jansen will test his mediator skills as he tries to align the government’s timetable with industry demands. Success hinges on finding a financing compromise that satisfies both public backers and private investors. Watch for the next round of negotiations between Jansen, the airlines and Arora, and whether the government can secure planning approval — its formal permission to build — by its 2029 target.