The UK Civil Aviation Authority (CAA) proposes changing how Heathrow is regulated and funded for its planned £31 billion third runway and associated terminal expansion. According to reporting, the regulator’s review seeks to reduce overall costs by altering the model through which Heathrow’s expansion is delivered and paid for. Under the CAA proposals, parts of the third runway and the new terminal could be opened to bids from rival companies, rather than being handled only through Heathrow’s existing contracting approach. The aim is to increase competition and bring down construction expenses as the project progresses.
Both outlets describe the CAA’s position as using a framework that would allow external bidders to design and build elements of the expansion, with Heathrow and the regulator adjusting oversight to support that approach. The proposals are presented as part of a broader effort to refine regulatory incentives and cost control for one of the UK’s largest infrastructure projects. The CAA’s direction would not change Heathrow’s overall plan, but could affect which firms are involved in delivering specific components of the works and how those costs are determined and managed.
