Heathrow has vowed to work collaboratively with airlines and other stakeholders to increase capacity limits at the UK hub as it goes through the latest round of pricing review.
UK regulator the CAA has begun an H8 pricing control review as part of an economic regulatory process that will determine the framework under which the airport operates from 2027.
Speaking at this week’s Airlines 2024 conference in London Heathrow Airport Ltd chief executive Thomas Woldbye said there is always “going to be lots of stuff we want to do better”.
He said Heathrow was a complex organisation with many stakeholders and he wanted to make it “less bureaucratic”, be faster at decision making and instil more of a “performance culture”.
“So far we have a good relationship with airlines. I know in the past there has been lots of discussions. We are where we are and we want to improve from here.
“Ninety percent of our objectives are the same; we want growth, happier passengers and we want to make a proper return in the process.”
Woldbye said as part of the H8 regulatory process Heathrow will look to show it can add value in cooperation with its airline, ground handling and parking partners for mutual benefit.
“We want to reduce costs, create less failure, lose less bags, but also create additional capacity by working together to make processes more smooth in the existing infrastructure.”
Plans include digitising airport terminal stands to decrease turnaround times and to improve the baggage handling and check-in processes.
“The combined effect of incremental improvements can provide additional capacity,” said Woldbye. “If we can find 10% more that’s eight million passengers. That’s considerable.”
He added he was not sure the current regulatory process is fit for purpose and could be less confrontational, but he said airlines and Heathrow are aligned in wanting happier passengers.
“If there is something in there for everyone we can grow the cake,” he said. “That’s where we want to start – what can we do to improve the value of Heathrow to the airlines.”
Asked about the potential for expanding Heathrow with a third runway under the new Labour Government, Woldbye said the airport is today at capacity “to the detriment of economic development”.
“I think we can fill any capacity we can build,” he said, “I’m not too concerned about the demand, I’m more concerned about how we can provide the capacity.
“If we want to go beyond a certain number, we need a third runway. That’s not a discussion. If the UK, as such, does not want the runway, why would it be built?
“Transportation strategy is a government issue, we are just the executors of the plan. The question is do we want this. If the answer is yes let us sit down and agree on the conditions.
“The project is there, it’s been there for a long time. But we need to have that fundamental agreement saying this is what we want, let’s agree in more detail, plan and execute.”
Woldbye conceded the third runway is “not an easy decision” because it will impact many people, which is why it has taken such a long time.
But he said it could be a “huge contributor” to economic growth. “If not, it has the potential to choke the industrial strategy.”
Woldbye said his preference is that a final decision is made by the end of next year “otherwise we will keep on talking about it, and keep on spending time, money and effort”.
“There is definitely positive momentum. We are not going to put a product on the shelves no one wants to buy.
“Our major stakeholders support what would be one of the biggest projects in the history of the UK.
“We will be guided by the national infrastructure, transportation and accessibility strategy and then guided by what we as a company wants. We will survive without a third runway.”
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