Heathrow’s New Chair Steps In to Broker Peace Over Third Runway Costs

Heathrow’s newly installed chairman, Philip Jansen, has begun face-to-face talks with airlines and a powerful local hotel magnate in an effort to break a deadlock that could push the airport’s long-awaited third runway further off course.

Jansen, who took the helm in January, has met with carriers including British Airways, Virgin Atlantic, and Surinder Arora—the billionaire behind a rival £25 billion expansion plan. The goal: find common ground on costs and services for the £49 billion project, which has been stalled by years of infighting.

British Airways, which controls more than half of Heathrow’s slots, insists the total cost of the runway and related upgrades must not exceed £30 billion. That puts it at odds with Heathrow’s owners, a consortium led by France’s Ardian and backed by sovereign wealth funds from Qatar, Singapore, and Saudi Arabia.

Arora, along with BA and Virgin, is part of the campaign group Heathrow Reimagined, which argues the airport overcharges everyone—passengers, airlines, and shops. The group has refused to support expansion “at any cost.” Heathrow is already the most expensive airport in Europe, and in March the UK aviation regulator blocked a plan to hike landing fees further.

“Everyone agrees a third runway is needed,” said a person familiar with the talks. “The fight is over price. Airlines want the lowest possible cost. Others think they can do it cheaper. We’ve got to work together to find a way forward.”

Chancellor Rachel Reeves has thrown the government behind the expansion, promising construction will start before the next election. The current timeline targets completion by 2035, though Heathrow still needs formal planning approval to begin building by 2029.

Meanwhile, China Investment Corporation, which owns 10% of Heathrow, is reportedly considering selling its stake amid fears that rising costs will drag on for years.