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12.02.13

£3bn Heathrow Airport investment announced

Heathrow Airport is to spend £3bn on in investment programme over the next five years, it has announced with its new spending plans for 2014-19.

The works will include the completion of Terminal 2 and early work on extending the building, the development of a new integrated baggage system and the construction of new taxiways and stands.

The company, previously known as BAA, also wants to increase charges for airlines to use the airport. This proposal must be approved by the Civil Aviation Authority (CAA), who will make a final decision by January 2014.

The charges could go up by an equivalent of 319.33 per passenger for 2012-13 up to a possible £27.30 in 2018-19. Heathrow Airport is predicting that passenger numbers will increase from just under 70 million now to around 72.6 million by 2018-19.

Colin Matthews, chief executive of Heathrow said: “Heathrow faces stiff competition from other European hubs and we must continue to improve the service we offers passengers and airlines.

“Our plan for a further £3bn of private-sector investment will further improve the airport for passengers. The plan represents good value for money for airlines and passengers and comes at no cost to taxpayers.”

Virgin Atlantic and British Airways said they hoped the CAA would not “penalise” customers and airlines with a price increase.

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