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Heathrow Airport: Finance

Volume 487: debated on Tuesday 3 February 2009

To ask the Secretary of State for Transport (1) whether the Government plans to provide guarantees in relation to the financing of construction of a third runway at Heathrow; (252158)

(2) what estimate he has made of the cost to the public purse of construction of a third runway at Heathrow.

[holding answer 28 January 2009]: The Government will not be providing guarantees for the financing of the construction of a third runway at Heathrow. The financing of new infrastructure at Heathrow airport is a matter for the airport operator, subject to economic regulation.

Heathrow is a designated airport for the purposes of price control. These controls are set by the independent regulator the Civil Aviation Authority. Part IV of the 1986 Airports Act requires the CAA, when setting price controls, to (among other things)

‘encourage investment in new facilities at airports in time to satisfy anticipated demands by the users of such airports.’