Hotel tycoon unveils rival Heathrow expansion plan with shorter third runway

Hotel tycoon Surinder Arora has published a Heathrow expansion plan which rivals a proposal from the airport’s owners.

The billionaire’s Arora Group said the “primary benefit” of the plan it submitted to the Government is a shorter new runway which would avoid the costly and disruptive need to divert the M25 motorway.

Building a 2,800-metre third runway instead of the full-length 3,500-metre runway planned by the airport would result in “reduced risk” and avoid “spiralling cost”, the company said.

A shorter runway could have limits on its use, although Arora Group insisted it would be able to accommodate aircraft of all sizes.

Arora Group’s Heathrow West proposal states the new runway could be fully operational by 2035, while a new terminal would open in two phases, in 2036 and 2040.

The plan, developed with infrastructure company Bechtel, has a cost estimate of under £25 billion, not including the redevelopment of the airport’s existing central area.

Mr Arora, who is one of the largest landowners at Heathrow, said: “After a decade working with our world-leading design and delivery team, I am very proud that the Arora Group can finally unveil to the UK Government our Heathrow West proposal, which directly meets and supports the United Kingdom’s primary objective of unlocking economic growth at the UK’s only hub airport, with a strong commitment of doing so on-budget and on-time.

“The Arora Group has a proven track record of delivering on-time and on-budget projects including in and around Heathrow airport.

“We are delighted that the Government has taken a common-sense approach to invite proposals from all interested parties for the very first time rather than granting exclusivity to the current airport operator, no matter its track record.”

Mr Arora has repeatedly accused the airport of wasting money.

In December 2024, French company Ardian completed a deal to become Heathrow’s largest shareholder with a 23% stake, while Saudi Arabia’s sovereign wealth fund purchased a 15% share.

Chancellor Rachel Reeves gave her backing for a third runway in a speech on growth in January.

Heathrow will submit its own expansion plan to the Government on Thursday.

Transport Secretary Heidi Alexander will then review the Airports National Policy Statement, which provides the basis for decision-making on any Development Consent Order application.

Heathrow is understood to be open to a discussion with airlines about building a shorter runway if it can deliver the same benefits.

The airport declined to comment on the Arora Group’s proposal.