London Airports Compete for Chance To Build New Runway
At least some of the $3 billion in planned investment is underway at Gatwick Airport, 45 kilometers south of London, including a $150-million north terminal upgrade and baggage improvements in the south terminal. Improving Gatwick for the growing number of passengers—over 34 million last year—keeps development director Willie McGilleveray busy enough for now. But he'll be even busier if private owner Gatwick Airport Ltd. (GAL) wins a battle with former stablemate Heathrow airport for government approval to build the biggest piece of its plan: a $11.7-billion project to build a second runway, new terminal and related infrastructure.
GAL plans phased openings starting in 2020—with capacity to handle an expected 45 million annual passengers—ending 25 years later with more than double that capacity. But Heathrow airport officials also have two potential designs that are competing with each other and with Gatwick to be chosen by the government as the preferred site for a new runway to serve the London area and southeast England.