The UK risks missing out on a “positive cycle in the economy” if it fails to approve Heathrow’s third runway, the boss of Istanbul airport has said, adding that a phased approach to development could help keep a lid on the mega-project’s eye-watering costs.
Selahattin Bilgen, chief executive of Turkey’s iGA Istanbul Airport, told City AM he would “be really welcoming” of Heathrow’s long-awaited expansion, adding that his own airport’s development had been a boon for the local economy.
“Heathrow has been a magnificent airport – one of the best (…) in the world providing good connectivity for Europe,” he said. “I personally feel – as an ambassador for the industry – (…) that better air connectivity is always better, not just for the home country but the whole region.”
Bilgen, whose airport recently leapfrogged the west London hub to become busiest in Europe, added that he could not “put himself in the shoes of the transport minister” but that as the chief executive of Istanbul Airport he would welcome the competition of a larger Heathrow.
The aviation boss was speaking amid growing speculation that Andy Burnham could pull the plug on the project despite potential operators already spending hundreds of millions of pounds on planning. At a string of recent media appearances, the Prime Minister has refused to endorse the multibillion-pound project, saying it was a decision for “London and Londoners”.
Burnham cools on third runway
The indifferent approach stands in stark contrast to the one adopted by Keir Starmer and former Chancellor Rachel Reeves, who cited expansion of Europe’s second-largest hub as a central tenet of their pitch to grow the economy. Any U-turn would also risk irking the country’s unions, airlines and manufacturers, all of whom have publicly backed the project.
Proponents argue that the third runway – which is now not due to begin operations until 2039 – will bring jobs and investment to the UK and allow Heathrow to retain its hub status. But critics say the expansion is impossible to reconcile with Britain’s climate targets and that costs could run over Heathrow’s £49bn budget.
Bilgen said Turkey has benefited from the phased approach it has adopted during construction. The hub was built on a completely different site to the Turkish capital’s previous airport, and opened in 2018 with just two runways. The first of four phases cost just €7bn (£5.9bn), and it has since opened one more runway, with up to three more to follow, taking the total bill so far up to €9.2bn.
“The overall approach we made in Istanbul has worked quite well,” he told City AM, adding: “It was not easy and it is risky, but at the end of the day, our example has proven that it can be a good success… we are quite proud of what we have achieved.”
Keeping hub status ‘extremely important’
The strategy is similar to the rival third runway bid being tabled by hotel tycoon Surinder Arora. Arora’s Heathrow West proposal, which is likely to be Heathrow’s only competition should expansion be rubber stamped by ministers, argues that building the mega-project in two distinct phases will help minimise costs and construction times.
Incumbent operator Heathrow Airport Limited has presented plans for a 3,500m runway that if approved would require rerouting the M25. It has argued that Britain could not realise the economic benefits of expansion without a full-length runway.
But Arora has said that building a shorter 2,400m strip initially would allow ministers to hit their original 2035 timeline. They could then decide whether to progress with full expansion once flights are up and running.
Bilgen added that a flourishing aviation industry, and an airport’s hub status, is “extremely important and people have to recognise the importance of that”.
“You can observe the improvement of air connectivity leading to more tourism, enhanced logistics, more commercial activities, better cultural exchange,” he added. “We really have benefited and observed these developments in quite a short time period.”
The Department for Transport was approached for comment.