Heathrow Airport potentially facing similar issues as Thames Water, according to Surinder Arora's statement.
Businessman Surinder Arora Challenges Heathrow's Monopoly with Proposal for Third Runway
In a bold move, Indian-British entrepreneur Surinder Arora has thrown his hat into the ring to break a decades-long monopoly and win the right to build Heathrow's third runway. Arora, who rose from humble beginnings as a cleaner at Heathrow Airport to become one of the 50 richest men in the country, has assembled a team of aviation and infrastructure experts for his proposed scheme, dubbed 'Heathrow West'.
Arora's bid, lodged with the Department for Transport at the end of July, comes two months after transport secretary Heidi Alexander fired the starting gun on the project's bidding process, confirming that the government would accept proposals from multiple 'promoters'.
A Shorter Runway and Lower Budget
Heathrow West's proposal includes plans for a new Terminal 6 immediately to the west of Terminal 5 and a shorter runway, which is 700m shorter than the design proposed by the incumbent operator, Heathrow Airport Limited (HAL). This shorter runway aims to avoid building over and rerouting the M25, a move that Arora claims will prevent the project from realizing its full economic potential, according to HAL.
The shorter runway and more prosaic design come with a lower estimated budget of below £25bn, compared to HAL's proposal of £49bn. Arora's plan also includes a more efficient use of existing infrastructure, which he argues will carry 97% of the amount of traffic of HAL's all-singing, all-dancing alternative.
A Disruptor in the Making
Arora disputes HAL's assessment, claiming that the regulatory model at Heathrow is broken and needs to change to avoid further underperformance. He cites several examples of what he sees as HAL's financial complacency, including the case of two hotels, one of them his, within the airport's jurisdiction, and the other outside, paying vastly different fees for the disposal of water and waste.
If successful, Arora looks forward to being the disruptor or underdog and breaking up the old boys club. He plans to continue his involvement in the Heathrow Reimagined campaign, a joint venture with Heathrow's three main airlines, if his proposal fails.
Backing from Industry Leaders
British Airways-owner IAG has branded Heathrow West's proposal as 'credible'. Arora has assembled a team of experts for the project, including Mike Clasper, Rod Addington, Rob Webb QC, Bechtel, Scott Brownrigg, and Changi Airport.
A Decade-Long Pursuit
The bid's genesis can be traced back over a decade, with Arora having pursued the project since then. Arora does not have any commercial interest in transport beyond the expansion's positive impact on his surrounding hotels.
A Contentious Bid
Arora's launch into the mainstream of UK corporate affairs has not been without controversy. He has questioned the experience of HAL in managing large-scale infrastructure projects, comparing it to HS2, Thames Water, and problem-plagued projects like Hinkley Point C and the Lower Thames Crossing.
Chancellor Rachel Reeves gave a speech endorsing three airport expansion projects, including Heathrow's third runway, in January this year. However, the search results do not provide information about other candidates who, alongside Surinder Arora, applied for the right to build Heathrow's third runway.
Heathrow is the most expensive airport in the world for airlines and passengers, but struggles to make the global top 20 of the industry's flagship rankings. The future of the UK's busiest airport is up for grabs, and Arora is determined to shake things up.
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