Heathrow Expansion Confirmed

It has been announced today that Heathrow’s expansion plans have been granted permission. This has been a very popular topic in recent weeks as we have awaited the decision, the news has caused a lot of debate across the government, the industry and the public.

There are numerous benefits this expansion will bring, obviously it is brilliant news for Heathrow and offers opportunities to the whole of the UK. A major benefit being the countries economy is set to grow up to £211 billion by 2050 and 179,800 new jobs are expected to be created!

Inbound tourism is a vital part of the UK economy, bringing £21 billion to the UK in 2013. With Heathrow’s expansion, tourism is expected to increase massively as the flexibility of travel will make it easier to access Britain.

Along with tourism, the improved transport links are predicted to increase business investments in the UK, John Cridland CBI Director- General said: “Creating new routes to emerging markets will open doors to trade, boosting growth, creating jobs and driving investment right across the country. Our research shows that eight new daily routes alone could boost exports by up to £1 billion a year. The UK’s economic future cannot be kept waiting on the tarmac any longer. By taking the decision now, the Government can send the message, loud and clear, that Britain is open for business.”

The public are also reaping the benefits, including a greater choice of airlines, routes and destinations. On top of this Heathrow predict the average ticket price will reduce as there will be more airlines competing on more routes, driving the price down. Heathrow’s current capacity isn’t sufficient for the flight demand which has resulted in a ticket price increase to balance capacity with demand!

This expansion keeps the UK in a leading position as many articles have stated Heathrow needs more runways to compete with other European cities, ‘Heathrow is currently the largest hub airport in Europe but new research shows it will drop to second bottom by 2030 without expansion’. This expansion will make it easier for UK businesses to access growing markets across the world, and likewise, increase global investor’s access to the UK, driving the economy forward.

This expansion is unlikely to be the last; many airports are applying for expansions which are still undergoing the decision process, Gatwick’s proposed expansion is rumoured to still be under consideration – watch this space!