Airport News

Heathrow has announced it will invest a further £3bn in airport infrastructure over the next few years as part of its ‘Q6’ business plan – the regulatory period which covers 2014-2019 – representing one of the largest private-sector investments in UK infrastructure.

The investment is in addition to the £11bn that has already been spent improving the airport since 2003, and will include the completion of Terminal 2 and early work on extending the building. The airport will also develop an integrated baggage system and construct new taxiways and stands to allow it to accommodate more of the most modern aircraft.

Commenting on the investment plans, Colin Matthews, chief executive of Heathrow, said, “Heathrow is the UK’s only hub airport and a strategically important national infrastructure asset. Heathrow faces stiff competition from other European hubs and we must continue to improve the service we offers passengers and airlines. We have invested billions of pounds in new facilities such as Terminal 5 in recent years and passengers say they have noticed the difference. Our plan for a further £3bn of private-sector investment will further improve the airport for passengers. The plan represents good value for money for airlines and passengers and comes at no cost to taxpayers.”

The airport will use the £3bn to focus on better customer service, increased airport resilience and reliability, and improved environmental performance. It has outline 10 priority areas for Q6:

1. New Terminal 2. Heathrow will open the new Terminal 2 in 2014, which will result in most passengers travelling through new facilities. The subsequent move of airlines into the new terminal allows the closure of Terminal 1 in 2016. The end of Q6 will see the start of work on extending Terminal 2.

2. Smoother journeys. Heathrow will build more self-service check-in kiosks and introduce new self-service bag drops, which will give passengers greater choice and reduce airline operating costs. It will also enhance real time information and introduce free wi-fi.

3. Consistent, courteous service. Heathrow will provide additional customer service training for staff and introduce mobile staff with tablet computers to provide greater assistance to passengers.

4. Improved efficiency. Heathrow will deliver £248m of savings to minimise airline charges by improving operational efficiency; retiring old facilities such as Terminal 1; and investing in new facilities, such as self-service bag drops, which reduce airlines’ costs.

5. Better surface access. Heathrow will extend its innovative personal rapid transport ‘pods’ to link Terminals 2 & 3 with their business car parks. The airport will fund part of the Crossrail project, which will link Heathrow to the City of London, Canary Wharf and the East End quickly and efficiently.

6. Valued airport products and services. Heathrow will continue to evolve its range of commercial products and services to meet the demand from its diverse mix of passengers, including develop premium retail and additional lounges, all of which contribute to significantly offsetting airport charges.

7. Higher punctuality. The airport will introduce new airport management technology and additional runway rapid exit taxiways to help improve punctuality and reliability at Heathrow. It has an aspirational target of 90% on time performance, up from 80% today and around 63% in 2007.

8. Quicker connections. Heathrow will reduce the waiting time for transfer security so that 99% of the time passengers wait less than 10 minutes – the shortest security queuing standard of any major hub airport in Europe. A new integrated baggage system will improve baggage reliability, which has already improved from 40 missed bags per thousand passengers in 2007 to 15 per thousand today.

9. Quieter aircraft. Heathrow will invest in upgraded stands and taxiways that will help to make it the busiest hub for A380s in Europe. These modern aircraft are popular with passengers, as well as quieter and more fuel-efficient than the aircraft they replace. Following the introduction in 2011 of new incentives and penalties to encourage airlines to operate the quietest aircraft, Heathrow will continue to trial new operational procedures that can reduce noise for local communities and roll out improved noise insulation schemes for local properties.

10. Reduced pollution. Heathrow will increase the provision of pre-conditioned air, which allows aircraft to switch off their engines while on the ground. It will also introduce more airside electric vehicles, cutting local pollution and reducing operating costs for airlines.