Heathrow’s long-discussed £33bn third runway faces fresh doubt after Prime Minister Andy Burnham declined to back it last week. The privately funded expansion of the world’s second-most connected airport is emotive due to Heathrow’s association with London’s status as a global financial centre. The project would create tens of thousands of jobs and is desired by full-service airlines, particularly for profitable North American flights.
However, the projected 2.6bn boost to UK GDP by 2056 is a rounding error. The need for giant hubs is challenged by long-range narrow-body planes like the Airbus A321XLR, which could open over 1,000 new routes. Political capital and planning capabilities are limited, while Heathrow’s relative position has deteriorated.
The third runway first won government backing in 2003, the same year the film *Love Actually* was released, which has aged better than the infrastructure plan.
Source: Financial Times Companies · Summarized by HeadlinesBriefing