Heathrow's £33bn third runway is once again in doubt after Prime Minister Andy Burnham declined to back it last week. The expansion has long been debated due to planning, pollution and profit concerns. Heathrow is closely tied to London's status as a global financial centre, but the project's economic impact—estimated at an extra £2.6bn or 0.05 per cent of annual GDP by 2056—may be considered a rounding error.
The airport would create tens of thousands of jobs and is supported by full-service airlines and businesses, particularly for North American flights. However, the rise of long-range narrow-body planes like the Airbus A321XLR, capable of opening over 1,000 new routes, challenges the need for giant hubs. Even direct flights between New York and Birmingham International could serve as an alternative.
About 40 additional airlines are seeking access to Heathrow, but political capital and planning capabilities are limited. The third runway first won initial government backing in 2003, the same year Love Actually was released. Of the two, the film has aged rather better.
Source: Financial Times Companies · Summarized by HeadlinesBriefing