Heathrow looks to expand capacity as it records profit for first time since pandemic
Heathrow airport’s new boss is working on a plan to expand the airport’s capacity regardless of whether it builds a third runway, after returning to profit for the first time since the pandemic. Thomas Woldbye, who joined in October from Copenhagen airport, has launched a sweeping review of the airport’s strategy, including whether the controversial megaproject to build a third runway in west London is affordable. “The third runway is a huge issue, both for the UK and for the airport and also for the society around us. And we have to make sure we get it right,“ he told the Financial Times. But Heathrow is forecasting record passenger numbers this year, and Woldbye said the airport would prioritise smaller infrastructure improvements to increase passenger capacity and free up “bottlenecks”, from parking to baggage systems. The airport is limited to 480,000 flights a year, but better infrastructure would allow airlines to cram more passengers through the airport, either through larger planes or filling up their current flights, which are on average 20% empty when flying into Heathrow. “If we can improve every little point just a little bit it’s actually quite a significant additional effect,” Woldbye said. Heathrow is in the midst of the biggest shake-up of its ownership since its privatisation in the 1990s, after Spanish infrastructure group Ferrovial in November said it would sell its 25% stake to Saudi Arabia’s PIF and French buyout group Ardian for GBP2.4b. Three other shareholders — the UK’s Universities Superannuation Scheme, Canada’s Caisse de dépôt et placement du Québec (CDPQ) and Singapore’s GIC — have also exercised a right to try to sell their stakes alongside Ferrovial, leading to a scramble to fund buyers for the 60% of the airport which is set to change hands. The airport said it could “plausibly” pay its owners a dividend this year, depending on its financial performance, but said one is not currently planned. “I think successful businesses should pay dividends . . . to get a healthy Heathrow we need investors that want to invest, and to get investors who want to invest they need to get returns,“ Woldbye said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-02-22/general/heathrow-looks-to-expand-capacity-as-it-records-profit-for-first-time-since-pandemic
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Heathrow looks to expand capacity as it records profit for first time since pandemic
Heathrow airport’s new boss is working on a plan to expand the airport’s capacity regardless of whether it builds a third runway, after returning to profit for the first time since the pandemic. Thomas Woldbye, who joined in October from Copenhagen airport, has launched a sweeping review of the airport’s strategy, including whether the controversial megaproject to build a third runway in west London is affordable. “The third runway is a huge issue, both for the UK and for the airport and also for the society around us. And we have to make sure we get it right,“ he told the Financial Times. But Heathrow is forecasting record passenger numbers this year, and Woldbye said the airport would prioritise smaller infrastructure improvements to increase passenger capacity and free up “bottlenecks”, from parking to baggage systems. The airport is limited to 480,000 flights a year, but better infrastructure would allow airlines to cram more passengers through the airport, either through larger planes or filling up their current flights, which are on average 20% empty when flying into Heathrow. “If we can improve every little point just a little bit it’s actually quite a significant additional effect,” Woldbye said. Heathrow is in the midst of the biggest shake-up of its ownership since its privatisation in the 1990s, after Spanish infrastructure group Ferrovial in November said it would sell its 25% stake to Saudi Arabia’s PIF and French buyout group Ardian for GBP2.4b. Three other shareholders — the UK’s Universities Superannuation Scheme, Canada’s Caisse de dépôt et placement du Québec (CDPQ) and Singapore’s GIC — have also exercised a right to try to sell their stakes alongside Ferrovial, leading to a scramble to fund buyers for the 60% of the airport which is set to change hands. The airport said it could “plausibly” pay its owners a dividend this year, depending on its financial performance, but said one is not currently planned. “I think successful businesses should pay dividends . . . to get a healthy Heathrow we need investors that want to invest, and to get investors who want to invest they need to get returns,“ Woldbye said.<br/>
