The UK's Civil Aviation Authority has ordered Heathrow to allow rival companies to bid for its third runway and new terminal construction, a major shift in airport governance designed to control costs amid rising concerns from airlines about the airport's massive expansion plans.

Airlines, particularly British Airways and Virgin Atlantic, oppose Heathrow's £31bn plan for a new runway and terminal complex, fearing runaway expenses that would translate into higher fares through increased airport charges while the airport claims the project would add 0.5% to UK GDP.

The regulatory shake-up includes radical proposals allowing separate businesses to build standalone terminals at Heathrow, similar to New York's JFK airport, with hotel magnate Surinder Arora already indicating interest in developing the infrastructure as the government prepares to vote on a new policy document this summer.