London Heathrow reveals £49billion masterplan including much anticipated third runway, new terminal and cheaper flights

Published on July 31, 2025 at 11:01 PM

LONDON Heathrow Airport has revealed their multi-billion masterplan for the extension of the airport including the controversial third runway.

The huge project is expected to cost nearly £50million, if given the go-ahead by the government.

Illustration of Heathrow Airport expansion plans, showing proposed terminals, aprons, and terminal connectivity.
London Heathrow Airport has unveiled their £49billion masterplan
Illustration of Heathrow Airport expansion plans, showing proposed motorways, roads, and junctions.
A third runway, new terminal and upgraded M25 access are the major parts of the project

The will be the £21billion third runway, which is set to be operational in the next 10 years.

This is the same estimation of costs predicted in 2014 of £14billion, when adjusted for inflation.

The new 3,500 metre runway will be in the northwest of the airport, and will eventually welcome up to 276,000 new flights a year.

This takes the annual flights from 480,000 to 756,000, with as many as 30 new flight routes a day.

It could even welcome more budget airlines, such as who have expressed desires to launch from London Heathrow with the expansion.

boss Kenton Jarvis said: “I’ve always thought Heathrow would fit our network of primary airports with great catchment areas.

“It would be a unique opportunity to operate from Heathrow at scale and give us an opportunity to provide lower fares for UK consumers that currently at just have the option of flag carriers.”

The airport suggests this could save as much as £79billion over three decades with the addition of low-cost airlines.

A new £15billion terminal complex will also be built, called T5XW and T5XN.

The creation of the new terminals will also see T1 and T3 demolished, and T2 expanded, at the cost of £15billion.

In total, the entire project is expected to cost as much as £49billion.

As many as 150million passengers could then be using the airport, up from 84million.

This would make it the busiest airports in the world, 105million passengers.

The airport hopes to get planning permission by 2029, if ministers allow the proposal to go ahead.

Other parts of the renovation include a 50 per cent in cargo capacity, and and larger access for buses and trains.

One of the biggest concerns is the access around the M25, a notoriously busy motorway.

Illustration of Heathrow Airport expansion proposal.
A rival Heathrow expansion plan would see a shorter new runway
Illustration of Heathrow Airport expansion proposal.
However Heathrow has hit back at the plans

The improvement plans also include the widening the M25 near the Heathrow junctions (at a cost of £1.5billion) which will see a new section in a tunnel under the runway to reduce congestion.

A similar road layout is already in place at Charles de Gaulle Airport in Paris.

Earlier today,

Arora Group - a major Heathrow landowner - proposed a shorter third runway which would eliminate the need to reroute the M25.

Rather than being 3,500 metres in length, it would be just 2,800 metres.

The plans also include a new T6 terminal, with the full project estimated at £25million - half the cost of the official London plans.

Mr SurinderArora explained in regards to the ‘Heathrow West’ plan: “I am proud to unveil the Heathrow West proposal which meets the UK’s ambition to grow its only hub airport while delivering on time and on budget.”

He added that the Arora Group had a “track record of delivering on-time and on-budget projects including in and around Heathrow airport.”

However, London Heathrow refuted their suggestions in the their own proposal, saying “any other proposal would not have this extensive public scrutiny and policy backing, risking years of delay and judicial review which mean the Government’s timetable would be undeliverable.”

They also said that shorter runways “do not necessarily cost less” as the different location would require buying more residential properties with compensation costs not factored in.

Here’s another

Illustration of Heathrow Airport expansion plans.
The airport hopes to have planning permission by 2029

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