Heathrow's third runway will be empty if users have to pay - IAG

Heathrow's third runway "is going to be empty" if high charges are levied on airlines and passengers to foot the bill, the airport's biggest customer has warned.

- Gwyn Topham

British Airways' owner, International Airlines Group (IAG), said the price paid per passenger could double under plans revealed on Thursday by Heathrow to invest almost £50bn in expansion and upgrades, including a £21bn third runway and new terminals.

Luis Gallego, IAG's chief executive, said: "The investment is going to be huge, and with the current regulatory model it is going to be very expensive for customers. If we build a new runway and don't change the model, passengers are going to pay double. We risk a new runway that is going to be empty."

Current airport charges are about £25 per passenger per flight, capped by the regulator, the Civil Aviation Authority, which adjudicates in a five-yearly settlement between the airport and the airlines.