CAA publishes new Heathrow third runway costs consultation

A second consultation on the regulatory treatment of early costs of Heathrow expansion has been published today (Tuesday) by the aviation regulator.

The move by the Civil Aviation Authority follows the government selecting the airport’s £33 billion third runway scheme to inform its review of its Airports National Policy Statement (ANPS). 

The ANPS provides the primary basis for government decision making on development consent applications for the third runway.

The CAA said it was seeking industry views on its proposals, which include the “overall approach, scope and mechanism for recovery of early costs incurred” during the expansion programme. 

The proposals have been developed following a previous CAA consultation in August and an update to industry published in September.

The authority said: “The proposals aim to provide an appropriate level of clarity and certainty for Heathrow Airport Limited on the recovery of early costs incurred in 2025 and 2026, while also creating incentives and arrangements to promote efficiency.

“After considering all industry responses, the regulator intends to publish its draft decision and statutory consultation on modifications to the licence in early 2026.  

“This will be followed by the final decision and statutory notice on the necessary modifications to Heathrow Airport Limited’s licence.”

The CAA is consulting on the proposals until January 26.

Meanwhile, Stansted revealed that a planning application to increase passenger numbers up to 51 million a year over the next two decades has been backed by a number of leading airlines.

The application seeks permission to make best use of the airport’s existing single runway by the 2040s without any increase in the number of flights the airport is already permitted to operate and within the existing airport boundary.

The growth in passenger numbers will be achieved by airlines flying new larger aircraft with more capacity.

Carriers backing the capacity hike include Jet2.com, Emirates, Turkish Airlines, Pegasus and AJet.