New Civil Engineer Civil engineering and construction news and jobs from New Civil Engineer
The Civil Aviation Authority (CAA) has hired an independent assessor to determine whether Heathrow’s terminals could be operated by different companies, New Civil Engineer can reveal.
The assessor will outline how separate terminal operators could work together following the airport’s planned expansion, sources have revealed.
The government’s Airports National Policy Statement allows for there to be more than one party responsible for promoting the development required to deliver expansion at Heathrow Airport.
Expansion bidder Heathrow West – backed by the Arora Group – has called for the introduction of separate terminal operators to increase efficiency at the airport.
Heathrow West has before raised concerns about operator Heathrow Airport Ltd's ( HAL’s) existing “monopoly position in relation to the provision of airport operation services and related services at Heathrow Airport” and about the “undesirability of Heathrow expansion exacerbating the anti-competitive effects of that monopoly and leading to increased costs to both airlines and consumers”.
HAL and Heathrow West have both carried out consultation exercises as part of their development consent order applications to the Planning Inspectorate. They are both expected to submit their final expansion plans in the summer 2020.
In the summary document accompanying its consultation submission, Heathrow West explains: “We believe in competition. Competition is what drives innovation, success and the best outcome for the consumer, the local community and other stakeholders.
"Having more than one operator of the terminals at Heathrow Airport will enable competition and choice, providing the opportunity for better terminals and a higher quality of service for airlines and passengers.
“It is our preference to work in a coordinated and collaborative manner with HAL to deliver the best quality solution for airport expansion and for delivery on time. We have worked closely with [airport regulator] the Civil Aviation Authority (CAA) to ensure that competition at Heathrow can be delivered from a regulatory perspective.”
A number of airlines, including British Airways’ parent company, IAG, have also previously demanded that terminals at Heathrow are divided up between rival owners to “spur competition on airport charges and the passenger experience”.
IAG’s chief executive Willie Walsh said: “Heathrow’s had it too good for too long and the government must confirm the CAA’s powers to introduce this type of competition.
“This would cut costs, diversify funding and ensure developments are completed on time, leading to a win-win for customers.”
HAL has repeatedly defended its ability to deliver expansion in an efficient manner.
A HAL spokesperson said: “Heathrow is extremely efficient and viewed as a benchmark for major infrastructure projects.
“The current level of scrutiny and transparency around capital investment at Heathrow is already unmatched at any airport globally.”
New Civil Engineer understands that the independent assessor will submit a detailed report to the CAA in the spring next year, before HAL and Heathrow West submit their final expansion plans to the Planning Inspectorate.
A CAA spokesperson added: “The CAA commissions technical advice on a range of issues as part of our role in considering the regulatory framework for Heathrow airport.
"This includes a short initial study looking at different forms of third party involvement in designing, building and potentially operating a terminal at Heathrow airport, and what the implications for our regulatory framework might be.”
The independent assessment is the latest move by the CAA to ensure that “Heathrow expansion is delivered in a way that is affordable, financeable and, critically, in the interest of consumers”.
Earlier this week, the CAA revealed that Heathrow Airport Ltd (HAL) will be fined if its expansion costs rise above what has been agreed with the aviation regulator.
It comes after pre-construction costs in relation to HAL’s planning application rose to £2.9bn in July.
HAL is expected to submit its final development consent order application in June 2020, with Heathrow West to follow three months later. A decision on whether to grant planning permission is then expected to be taken by the transport secretary by the end of 2021 at the earliest.
Like what you've read? To receive New Civil Engineer's daily and weekly newsletters click here.
Have your say
or a new account to join the discussion.