SHERIDAN, WYOMING – Feb. 24, 2025 – In a significant move signaling confidence in the UK’s economic future, Heathrow has unveiled its largest private investment program, coupled with plans to submit proposals for a third runway to the government by the summer of 2025. This initiative, driven by the UK government’s support for expansion at Heathrow, aims to transform the airport’s infrastructure, enhance passenger experience, and boost the UK’s economic growth.
Major Investment in Infrastructure and Passenger Experience
The multi-billion pound investment program will focus on several key areas, including terminal infrastructure enhancements, improved customer experience and punctuality, enhanced local transportation connections, and sustainability initiatives. Heathrow plans to collaborate with airlines and the regulator to finalize plans for investing in the capacity of Terminal 2 and optimize passenger capacity in Terminal 5. Additionally, the airport will reconfigure and improve the airfield layout, increasing aircraft stands to bolster resilience and punctuality.
Sustainability and Community Impact
A core component of the investment program is a commitment to sustainability. Heathrow will further improve bus and coach connections to encourage sustainable travel options, benefiting local communities. New infrastructure will incorporate improved environmental credentials and utilize more sustainable power sources, aligning with Heathrow’s Connecting People and Planet sustainability strategy.
“This privately funded program will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the chancellor’s call to get Britain building. A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to the government this summer. Ahead of then, as part of a phased expansion program and supported by the government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability. This is a vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth,” stated Thomas Woldbye, CEO of Heathrow, during an address at British Steel Scunthorpe.
Economic Benefits and UK Steel Charter Commitment
Heathrow’s phased investment program is projected to create substantial opportunities for UK businesses and industries. As a testament to its commitment to supporting domestic industries, Heathrow has signed the UK Steel Charter, aiming to maximize supply chain opportunities for UK steel producers. According to Frontier Economics, a third runway could increase UK GDP by 0.43% by 2050, with 60% of that boost benefiting areas outside London and the Southeast.
“Signing the UK Steel Charter is a vital commitment to strengthening Britain’s industrial backbone, ensuring our steel industry continues to support high-quality jobs, drive investment and play a central role in the UK’s economic future. By prioritizing UK-made steel in major projects, businesses can build a more resilient and sustainable supply chain, keeping value and expertise within the UK. Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses, full stop. With the airport embarking on its largest-ever private investment program, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure. Backing UK steel means backing UK jobs, innovation, and long-term industrial growth, ensuring the benefits of Heathrow’s expansion are felt nationwide,” said Gareth Stace, director-general of UK Steel.
“We’re proud to be backing a third runway and the proposed expansion of Heathrow. Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector. As Britain’s only manufacturer of heavy construction steel sections and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers and the UK government, to support investments that grow the British economy. Our colleagues in Scunthorpe and Teesside have a distinguished history of supplying world-class products into projects like Heathrow’s expansion, and we are incredibly excited by the potential of today’s (Feb 12) announcement and the signing of the UK Steel Charter,” added Zengwei An, CEO of British Steel.
Engaging with Stakeholders and Addressing Environmental Concerns
Heathrow will engage with key stakeholders, including airlines and local communities, to develop and finalize its expansion proposals. Woldbye emphasized the airport’s commitment to addressing environmental concerns. “With strict environmental safeguards, expanding Heathrow will prove that the UK economy can be grown responsibly and deliver on commitments to future generations. This project can only go ahead if we meet the rules on noise, air quality and carbon that the government sets out in the Airports National Policy Statement – it’s as simple as that,” he stated.
“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before. I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt,” Woldbye further added.
Recent Lounge Updates
In related news, Lufthansa has recently reopened its updated passenger lounge at London Heathrow Airport. Located in Terminal 2, South Level, Level 5, the Senator and Business Lounge, which underwent renovations since October 2024, now offers an enhanced travel experience.
This substantial investment by Heathrow underscores its commitment to maintaining its position as a leading global airport and a key driver of the UK’s economic growth, while prioritizing sustainability and community engagement.
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