Heathrow: Heathrow Airport invests £3 billion in expansion

Heathrow Airport has announced investment plans for 2014 to 2017, with a £3 billion expansion programme that will include the opening of a new Terminal 2 next year.  The plans also include the development of a new integrated baggage system and the construction of new taxiways and stands to allow the airport to accommodate more of the most modern aircraft.

Ticket prices are expected to rise significantly to help fund the expansion - up from £19.33 per passenger today to an estimated £27.30 in 2018.

Since 2003 Heathrow says it has invest £11billion including the construction of Terminal 5. It added that it had "historically suffered from out-dated facilities and decades of under-investment".

Colin Matthews, chief executive of Heathrow, said: "Heathrow faces stiff competition from other European hubs and we must continue to improve the service we offers passengers and airlines.

"We have invested billions of pounds in new facilities such as Terminal 5 in recent years and passengers say they have noticed the difference. Our plan for a further £3b of private-sector investment will further improve the airport for passengers."

Meanwhile, Gatwick Airport has also revealed its plan for the next 10 years, including plans to invest £1b. Chief executive Stewart Wingate has also called for freedom from regulation.

He said: "We continue to make the case that there is no need to continue economic regulation of Gatwick beyond 2014. We do not believe that the exciting vision of a world-class Gatwick can be delivered under economic regulation."