Key takeaways:

• GBP 49 billion (TK 7, 89, 94 crore 95 lakh 80 thousand) total project cost
• GBP 33 billion (TK 5,32,00 crore 68 lakh 60 thousand) for runway, motorway, terminal
• Heathrow has 2 runways vs 6 at Amsterdam Schiphol
• Arora's rejected proposal: under GBP 25 billion (TK 4 lakh 3 thousand 355 crore)

Britain has chosen Heathrow Airport's GBP 49 billion (TK 7, 89, 94 crore 95 lakh 80 thousand) expansion plan to build a third runway, rejecting a cheaper rival proposal from Arora Group.

Finance Minister Rachel Reeves pledged in January to construct the runway, aiming to end decades of uncertainty over expansion at Europe's busiest airport. Government set 2035 as the target year for flights from the new runway, with planning consent required by 2029.

Heathrow's headline figure includes roughly GBP 15 billion (TK 2,41,821 crore 30 lakh) of upgrade work already planned. Building the runway, re-routing London's orbital motorway, and adding a new terminal will cost about GBP 33 billion pounds (TK 5,32,00 crore 68 lakh 60 thousand).

Government weighed Heathrow's plan against Arora Group's proposal, which owns land and hotels near the airport. Arora estimated its plan at under GBP 25 billion (TK 4 lakh 3 thousand 355 crore), though that figure excluded some costs.

Britain has backed several airport projects this year. Government approved Gatwick's second runway for regular use in September and supported a new terminal at Luton in April.

Located west of London, Heathrow operates at full capacity with two runways. Paris Charles de Gaulle and Frankfurt Airport each have four runways, while Amsterdam's Schiphol has six.

Government said it chose Heathrow's full-length runway plan as the "most deliverable option" to meet deadlines. Swift policy review will align plans with Britain's climate obligations to avoid legal challenges over air quality and emissions.

Heathrow, owned by France's Ardian, Qatar Investment Authority, and Saudi Arabia's Public Investment Fund, welcomed the decision. However, airport needs clarity on regulatory framework by mid-December to avoid delays.

Airlines including British Airways-owner IAG and Virgin Atlantic raised concerns about affordability. IAG spokesperson said they had ‘serious concerns’ about costs and planned talks with government to reduce project expenses.

Source: Reuters.