by Natasha Lair
Last updated: 7:30 AM ET, Fri August 1, 2025
The International Air Transport Association (IATA) is urging the UK government to proceed with caution as it reviews competing proposals for the future development of London Heathrow Airport (LHR).
In a statement, IATA supported the expansion of airport capacity in the Southeast of the UK but raised concerns about Heathrow Airport Limited’s (HAL) ability to deliver the project effectively and efficiently.
“There are clear economic arguments pointing to the benefits of expanding airport capacity in the Southeast of the UK. That includes UK’s only global hub, Heathrow Airport,” said Willie Walsh, IATA’s Director General.
“We applaud the government’s decision to support the UK’s global aspirations by advancing plans to expand Heathrow. This must not, however, come at any cost or make any assumption that the current operator is best placed to deliver the value that the UK’s economy will critically need for growth.”
Walsh criticized HAL’s performance, citing repeated failures to meet service level standards and referring to the March airport closure as “an embarrassment on the global stage.”
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“HAL’s joy in being the world’s second most expensive airport proves that it cares little about its customers—be they airlines or travelers,” he added.
“And HAL’s self-promoting suggestion that its proposal is somehow superior from the get-go because it may have a head-start in the planning process willfully ignores the true priorities of the UK, airlines and travelers.”
IATA emphasized the importance of maximizing returns on investment for any expansion, noting past infrastructure investments at Heathrow have underperformed.
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“The billions of pounds that have already been invested in Heathrow have under-performed, disappointing both passengers and airlines. So it is doubly important for the billions that will be invested in any expansion to be much better spent. That means focusing on efficiency in all aspects—cost, operations, and customer experience,” Walsh said.
The association welcomed the competing proposal from the Arora Group, describing it as a “welcome new perspective from a company with a respected track record and familiarity with Heathrow.”
“This decision is too important to be left solely to HAL’s viewpoint,” said Walsh. “Airlines look forward to reviewing both proposals in detail to be able to assess their merits, particularly their costs and consumer benefits.
"The government’s decision on the way forward must be well-informed by the airlines who will ultimately be charged to use whatever is built.”
Aviation contributes approximately $160 billion to the UK economy—4.8% of GDP—and supports around 1.6 million jobs.
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