Economics of Place

Ready for take-off? Cabinet approves plans for third runway at Heathrow

Ready for take-off? Cabinet approves plans for third runway at Heathrow

Today, UK Cabinet ministers have approved plans for a third runway at Heathrow, which has been operating at full capacity for over 10 years. Parliament will have a final vote on the matter in the coming weeks. We worked closely with Heathrow Airport to highlight its economic case for expansion.

Our analysis showed that, following expansion:

  • Ticket fares would fall, due to an increase in the number of seats available on the market and entry of new airlines,
  • Around 40 new long haul connections will be viable,
  • There would be considerable wider economic benefits as expansion would allow for more business travel to new and existing markets.

Frontier advises major airports and airlines on competition, regulatory and policy issues. 

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