Walsh warning over airports

The International Airlines Group (IAG), the parent company of British Airways, Aer Lingus and Iberia among others, could abandon Gatwick and stop growth plans at Heathrow if plans for new runways at either airport go ahead.

IAG chief executive Willie Walsh gave the warning in a speech at the ABTA Travel Matters conference in London on Wednesday.

He said the plans were too expensive, with Heathrow talking of a £17.6bn cost for a third runway and Gatwick lobbying for a second at a cost of £7.4bn.

Walsh said there was “no business case” for expansion at Gatwick, where a second runway could lead to charges to airlines doubling from £7 per passenger to £14.

He added: "We will consider our position at Gatwick if there is a decision for it to expand. The cost of expansion would wipe out any profit. We will definitely look to move flights to Stansted." 

On Heathrow, Walsh said shareholders, not airlines, should bear the financial burden of building an additional runway.

If the government backed the Heathrow proposal, it would price short-haul flights out of the airport. "If Heathrow comes up with a viable option we will consider it but if not we will consider other opportunities," he said.

www.iairgroup.com

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