Heathrow in talks with airlines about terminal shake-up
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Heathrow Airport is in talks with scores of airlines including British Airways about a once-a-decade overhaul of its occupancy – which could lead to some being forced to relocate their long-standing bases.
Sky News has learnt that Heathrow has opened negotiations with the 82 carriers which fly from the airport with a view to implementing operational changes aimed at better using its capacity during the coming years.
The last such set of discussions with carriers is understood to have taken place more than a decade ago.
It was unclear on Wednesday what stage the talks were at, or how fundamental the resulting changes would be, although airlines with major workforces at Heathrow are expected to try to moderate or resist enforced relocations.
By far the most significant operator at Heathrow is BA, which moved into the £4.3bn Terminal 5 in March 2008.
T5 is used exclusively by the airline, and handles more than 30m passengers annually.
Industry sources described the possibility of BA relocating its existing Heathrow home as highly unlikely.
A BA spokesman declined to comment.
Other major airline users of Heathrow include Qatar Airways, American Airlines, Singapore Airlines and Virgin Atlantic.
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Sources said Heathrow’s review could lead to a wide-ranging shift in space allocation at the airport.
One industry insider speculated that members of the Star Alliance, which include Air Canada, Singapore Airlines and Lufthansa and which largely operate out of Terminal 2, could be among those affected by the shake-up.
Responding to an enquiry from Sky News, a spokesman for Heathrow said: “Occupancy reviews are a normal part of running the airport – it’s how we ensure we make best use of the space that we have.
“We undertake these reviews usually once a decade to accommodate for changes in airline operations and airport infrastructure – the last review was in 2014 to coincide with the opening of Terminal 2.”
The spokesman added that its “objective in these reviews is to make the best use of the limited space at Heathrow, particularly focusing on driving overall operational resilience and matching available capacity with demand – this enables us to protect passenger experience of travelling through the airport”.
He said occupancy decision were made “in consultation with the entire airline community”.
On Wednesday, Heathrow said it would pay a dividend to shareholders for the first time in five years, with such payouts having been stymied by the pandemic.
The £250m payment comes as the Labour government seeks to boost economic growth by approving an unprecedented wave of aviation capacity projects.
Last year, Heathrow served close to 84m passengers, with pre-tax profits rising 31% to £917m.
Heidi Alexander, the transport secretary, is expected to give the green light to expansion at Gatwick, London’s second-biggest airport, this week, while Heathrow is reviving plans for a third runway after years of political and public protests.
Heathrow said on Wednesday: “We welcome the government’s endorsement of a third runway at Heathrow – we are submitting our proposals to the government this summer.
“We are working with ministers to agree the policy changes needed to deliver the project successfully.
“Our aim is to meet the government’s ambition to secure planning permission before the end of this parliament.”
