Artist's impression of the Western Hub
[Click here to find out more on our Western Hub plans]
The Arora Group has today unveiled its plans for new terminal buildings at London Heathrow Airport, as part of its bid to undertake the development of Heathrow’s expansion. Known as the ‘Western Hub’, the new terminals are designed to provide capacity for over 50million additional passengers and will transform passenger experience and efficiency at the UK’s premier gateway to the World.
The estimated cost of Arora’s airport expansion plans to full capacity is £14.4bn. The competing scheme, from the existing airport company (Heathrow Airport Limited), was recently costed at more than twice this sum by the Airports Commission, at £31bn*. Arora’s new plans make airport expansion affordable and give Heathrow the best chance of success when competing with other hub airports, such as Amsterdam Schiphol and Paris-Charles De Gaulle, post-Brexit.
In recent days, HAL said it would allow companies to bid to partner with it on various parts of the expansion scheme. Arora believes this is a step in the right direction but does not yet go far enough in guaranteeing a truly competitive expansion.
Arora’s Western Hub proposals will provide a step change in Heathrow’s international standing and competitiveness.
The proposals concentrate new terminal capacity on the western side of Heathrow, between the existing Terminal 5 (T5) and the M25. This avoids the need to redevelop existing terminals in the Heathrow central area (Terminals 2 and 3) which would be far more expensive and disruptive.
Instead of new, independent terminal buildings, the Western Hub integrates new passenger facilities with T5 into a single hub campus. At the heart is a new central concourse, which will serve as a single front door for all 85m passengers using the Western Hub. This building will be a magnificent and vibrant grand space, designed to amaze passengers and capture the excitement of air travel. It will provide efficient check-in facilities and compelling commercial amenities and will include one of the UK’s largest and most important rail interchanges.
The central concourse will provide fast and easy access to both Terminal 5 and to the new Terminal 6, with an elevated bridge concourse providing panoramic views over the airfield for passengers, and easy navigation underneath for aircraft.
Surinder Arora, Founder & Chairman of the Arora Group, said: “Our approach has been to work closely with airlines and to employ the world’s best and most experienced airport designers and these benefits are clearly evident in our Western Hub plans. Heathrow has been in monopoly control for too long and our proposals show what can be achieved through an alternative approach and Heathrow fully welcoming competition.
“We welcomed Monday’s consultation from the CAA. It is helpful to have talks in place and we are eager to work with all parties to realise the best solution for Heathrow.
“We are passionate about developing a Heathrow that delivers a truly world-leading experience; one that works for airlines; one that offers passengers a top-class journey; and one that has the commercial grounding to be a long-term success for the nation to take pride in.”
Key features of the Arora Group’s Western Hub plans include:
a. Strategic Location – all new terminal capacity located on the western side of Heathrow, close to the M25, avoiding bottlenecks associated with the M4 spur road and tunnel and far less costly and disruptive to develop.
b. Integrated Design – stunning architectural design to transform Heathrow. New terminals concentrated in a single Western Hub campus, avoiding the inconvenience and confusion associated with separate independent terminals. This is an innovative approach, providing a single place of arrival for all 85m passengers within Arora’s Western Hub and making a step change in ease of passenger access.
c. Integrated Rail infrastructure – a new integrated rail/air interchange within the central concourse, linking Heathrow to existing and new rail networks; a key factor in enabling the Government’s requirement for a step change in public transport use and environmental compliance.
d. Passenger convenience – integrated design of the Western Hub is designed to minimise walking distances and connection times, and “check-in” at the rail interchange will enable passengers to check-in much earlier in their journey.
e. Cost efficiency – significantly lower development cost, arising from more efficient design and layout, leading to lower charges for airlines and passengers.
f. Operational Efficiency – designed in close association with airlines to ensure operational efficiency, including a layout for aircraft to increase operational capacity and to ensure maximum direct access to aircraft for passengers. Location of the terminal maximises the use of the runways, minimises taxi times, and most importantly reduces the hub’s environmental impact.
g. Superior experience - smart experiential-focused design, based on learnings from the best airport terminals in the world to ensure that the Western Hub will be cutting-edge when opened and will transform passengers’ ease of journey and experience.
h. Robust technology adaptation – fully integrated technology to improve passenger experience by boosting operational efficiency and reducing cost. Latest automation technologies will enable:
1. Aircraft - to operate more efficiently e.g. systems, automated gates, automated tugs and airbridges
2. Passengers - Efficient baggage systems, smart security, automated guided vehicle (AGV’s) for quick connections
Sir Rod Eddington, former British Airways CEO and member of the Arora Group Heathrow Expansion Advisory Board, commented: “Heathrow used to be the premium global aviation hub but has suffered under the current monopoly, which has seen it drop below other European airports. Arora is best placed to deliver true competition and return Heathrow to its place as the top-tier international airport, which is critical in a post-Brexit Britain.”
Airlines operating from Heathrow have consistently voiced concerns about HAL’s ability to undertake Heathrow expansion in a cost-effective manner and have called for competitive principles to be adopted to ensure that expansion is undertaken by the best party and to ensure that it is a success. Airlines have therefore welcomed the Arora proposals.
A spokesperson from International Airlines Group (IAG, the holding company of British Airways, Aer Lingus, Iberia and Vueling) said: “Competition at Heathrow is critical to keeping costs low and we call on the Government to break up the airport’s monopoly and allow third parties to run terminals. The Arora proposal looks very interesting and deserves to be properly evaluated so that customers can get the best facilities at the most affordable price”.
Craig Kreeger, CEO, Virgin Atlantic, said: “Heathrow expansion is a once-in-a-generation opportunity to challenge the status quo and build the right airport for the future. Arora have developed a plan that will bring down the cost of construction and inject competition at the UK’s hub airport. At first look, this plan appears to be a credible alternative. Virgin Atlantic believes passionately in the benefits of competition to consumers, so we urge all involved in Heathrow expansion to give the Arora plan serious consideration.”
-ENDS -
NOTES TO EDITORS
* Figures based on extensive 2-year study carried out by independent consultants: Jacobs report and HAL submission to Davies Commission based on 2014 prices. See paragraph 4 below.
About the Plans
1. Development Context
The Arora Group announced its intention to bid for the right to undertake the development of Heathrow expansion in Summer 2017. Since that time, it has produced its terminal design and layout plans which are unveiled today.
The Arora plans have been carefully developed in close consultation with the major airlines operating at Heathrow to ensure the plans are optimised for their operations, efficient, cost-effective and improve the ease of travel and experience for passengers.
2. Monopoly vs Competition
Heathrow is currently under the monopoly control of HAL which has to date assumed the sole right to undertake Heathrow expansion. This has been challenged by the Arora Group’s bid and by airlines operating at Heathrow, who have provided their support. They believe HAL’s current monopoly excesses will mean that expansion will be too costly and inefficient, making it at risk of being a white elephant and not internationally competitive. They continue to lobby the Secretary of State for Transport (SoS) for competitive principles to be introduced into the expansion programme. This element also featured strongly in the recent Parliamentary Transport Select Committee’s process. The SoS is scheduled to provide a response to the Committee’s recommendations shortly.
HAL’s excesses mean that airlines are currently charged £22.50 for each passenger using the airport. This is one of the highest rates in the World and double that of Gatwick. Although this charge is to airlines, it is effectively passed on to passengers. Airlines believe that expansion costs need to be kept under control and guaranteed to ensure that existing charges won’t increase and that Heathrow is affordable for users. This is an objective endorsed by the SoS. Many airlines don’t believe HAL is capable of doing this and have asked for competition from other parties to give an expanded Heathrow the best chance of being implemented efficiently, and to maintain its international competitiveness post- Brexit. They also see Heathrow expansion as the ideal opportunity to break the HAL monopoly and to introduce competition into the airport.
As a monopoly, HAL is currently regulated by the Civil Aviation Authority (CAA). HAL’s current regulatory model effectively rewards them for expenditure. This, allied to HAL’s inefficient track record, has fuelled airline concerns about whether HAL should be entrusted with Heathrow expansion and they have advocated the benefits of competing parties having the opportunity to develop airport expansion more efficiently.
The CAA has called for the necessary powers to introduce competitive principles into Heathrow expansion. However, HAL can currently veto the introduction of competing parties. These powers are required from the SoS. The Arora Group has recently written to the SoS to reinforce this request.
The challenge to HAL’s existing monopoly builds on the previous break up of BAA’s ownership of a number of UK airports, enforced by the Competition Commission (CC) in 2010. The CC ruling forced BAA into selling other airports and they now only own Heathrow. Most, if not all, of the abuses found by the CC still apply today at Heathrow.The introduction of competition within the airport is the natural extension of the earlier sale and the means to break the monopoly and to bring benefits to passengers.
Although the Arora Group is bidding to undertake Heathrow expansion as a whole, the plans announced today relate to the new terminals only. It is possible that the new terminals can be undertaken separately within expansion overall. The airlines support this approach as a means of implementing the new terminals efficiently and in breaking the HAL monopoly when completed and operational. This model of competition between different terminal owners within airports is increasingly adopted across the world as a means of controlling charges to airlines and passengers. This would not cut across the principle of commonly operated and safe runways.
3. Passenger Capacity
Heathrow currently handles close to 80 million passengers per annum (MPPA). The Airports Commission targeted expansion to increase this by 50mppa to 130mppa. This will be enabled by the additional runway and additional terminal capacity. The Arora plans for the Western Hub have been carefully planned to meet this as below:
Arora’s plans have a major advantage in providing all additional terminal capacity required for expansion in a single location, the Western Hub. This makes Arora’s plans highly efficient and cost effective. In contrast, HAL‘s plans split the additional capacity between the west and eastern side of the airport, including extending T2 and the need to knockdown and rebuild T3. This makes HAL’s plans extremely inefficient, particularly because congestion in the east makes it a much more expensive option.
In addition, Arora’s plans for the Western Hub can be phased to enable the 50mppa capacity to be added incrementally and flexibly in line with demand. This is one of the advantages of a Western Hub, rather than separate terminal approach. No changes would be required to existing terminals, making Arora’s plans highly cost effective and avoiding massive disruption for passengers.
4. Cost
Arora’s estimated cost for expansion is £14.4bn. This includes the new runway and terminals to meet 130mppa. This compares with HAL’s plans which were costed by the Airports Commission at £31bn. HAL’s recent “indications” of “£14-15bn” are not comprehensive and are misleading as they do not achieve the 130 mppa target. HAL will need to invest further in existing terminals in the east to meet the full target. The Arora plans are therefore ultra-efficient and at a cost of under half of HAL’s.
5. Connections and Transfers
The compact and efficient configuration of the Arora’s Western Hub will allow connecting passengers to transfer between flights in a very efficient and time sensitive manner. This configuration will provide connecting times which are almost half of those at some other large hub international airports. Additionally, departing passengers will walk a maximum of 10 minutes from the post-security side of the central concourse to their T6 gate.
6. Public Transport and Western Hub Access
The new integrated rail/air interchange will link the Western Hub directly to all existing and planned Heathrow rail services, including Southern Rail, London Underground, Heathrow Express, Crossrail; and the potential future Western Rail.
Rail passengers will also benefit from a dedicated check-in/bag drop area as part of an integrated Public Transport Interface (PTI) at the train platform level, making public transport an appealing option for passengers by offering an efficient means of arrival, and helping to ease congestion elsewhere in the airport.
Road passengers for both T5 and the new T6 will be served by a single drop off and pick-up location, simplifying journeys and reducing the total number of vehicle trips and unnecessary circulation in the terminal complex. Additionally, by locating the new terminals close to the M25, the Arora Group plans avoid the creation of road ‘bottlenecks’ currently associated with the M4 spur road and tunnel.
These design features will support the Government’s requirement for a step change in public transport use and environmental compliance.
7. Experiential-focused design
The Arora Group plans, designed by one of the world’s leading aviation architects, Corgan, entail pioneering architectural design to transform Heathrow and ensure a superior passenger experience while being commercially viable. The design takes into account detailed insights on the travel preferences of core passenger groups – such as business travellers, the elderly and families.
For example, the architecture incorporates an elevated ‘high street’. As well as acting as a functional route from the terminal to the gates for passengers, and enabling aircraft to manoeuvre easily underneath the concourse building, the Sky-bridge offers a panoramic view for passengers and a world-class lounge, retail and dining offer, to create a vibrant and inspiring gateway.
Forecasting changes in transportation and technology, Arora’s plans accept future demands and infrastructure—accounting for near-term shifts including the advent of drone baggage deliveries and tracking as well as adaptability for seamless integration of future trends.
8. Air & Noise Pollution
Arora’s plans will [at least] match the existing targets for air quality and noise limits. By using 23% less land for the expansion, there will be an improvement in the noise and other impacts from construction itself.
Envisa (the specialists in environmental impacts of aviation), has found that currently, no difference can be observed between the HAL schemes and the Arora Proposal in terms of noise around LHR, based on similar operating scenarios provided by ERCD.
About the developers
The Arora Group
The Arora Group is a successful UK-focused private group of companies, which leverages synergies across its specialist property, construction and hotel divisions to its strategic advantage. Since 1999, the Group has built its standing through meticulously managing projects from inception to delivery and beyond. Today, it owns and manages a diverse portfolio of flagship assets across the nation’s key business locations, partnering with some of the world’s most recognised brands to deliver consistently high service levels and sustainable growth. For more information please visit www.thearoragroup.com . @Arora_Group.
The Arora Group has assembled the world’s leading airport consultants to support its bid for Heathrow expansion, including:
Doig and Smith
Doig+Smith has wide-ranging experience in the management of high-profile construction projects across the Transport, Health, Industrial, Commercial, Retail and Leisure Sectors. With offices in London, Edinburgh, Aberdeen and Glasgow, Doig+Smith can also use its extensive network of contacts to bring together like-minded parties to act as successful project partners.
Envisa
Established in 2004, Envisa is an environmental consulting company specialised in sustainable aviation. Their experts are widely recognised at national and international levels for their proficiency and expertise in issues linked to the aviation sector, as evidenced by our references in institutional, private and airport contexts. Their main focus areas are local air quality, greenhouse gas (GHG) emissions, and noise & energy management.
CONTACT:
For media enquiries, please contact:
FTI Consulting
Josephine Corbett / Eleanor Purdon
Tel: 0203 727 1000
Email: AroraGroup@fticonsulting.com
