London’s Heathrow Airport announced on Friday its intention to invest £10 billion ($14 billion) over the next five years to enhance facilities and accommodate more passengers, primarily funded by increased charges to airlines.
According to a statement, these plans, which require approval from the UK’s Civil Aviation Authority (CAA), aim to facilitate an extra 10 million passengers per year by 2031 at the busiest airport in Europe.
Out of the £10 billion, £2 billion will be sourced from shareholders, while the remaining funds will come from elevated fees that airlines will have to pay, costs that are typically passed down to passengers.
Heathrow indicated it plans to raise the fee imposed on airlines to an average of £33.26 per passenger. The CAA, which must first approve these plans, has previously urged Heathrow to lower the fees charged to airlines.
“This major infrastructure programme marks Heathrow’s most significant transformation in over a decade,” said Chief Executive Thomas Woldbye.
“To compete with global hubs, we must invest,” he added.
Heathrow said that the enhancements will include improved security and baggage processing, alongside new lounges, shops, and dining options within the current terminals.
In a separate development, Heathrow has recently gained support from the UK government to construct a third runway, as it faces capacity challenges.
The construction of this new runway will entail significant expenses and is expected to lead to further disruptions due to opposition from environmentalists.
