Tuesday 22 April 2014

Would Another Runway at Heathrow Lower Airfares? Don't Bet on It

                                Descending over residential property near London's Heathrow Airport


London’s Heathrow Airport is what people in the airline business politely call “capacity constrained.” It is surrounded by houses and highways, making expansion challenging, and the two runways have reached their limits for flights. As Heathrow executives fret that Dubai will overtake the title for international passenger traffic—a milestone that could come next year—they are eager to build a third runway to accommodate new flights to growing markets in India, Africa, and South America.
A British government commission named Heathrow and Gatwick as the two airports best served by expansion. A report released by Heathrow last week as part of its lobbying effort sought to put a price on the current congestion: Passengers pay an extra £95 ($160) on average fares because of the two-runway bottleneck, according to the study, and a third runway would reduce the average round-trip flight by £300 by 2030. (That eye-popping figure even accounts for the cost of the new runway, pegged at £20 per passenger.) Heathrow officials did not respond to e-mails seeking comment.

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