Plans to build a third runway at Britain’s busiest airport Heathrow have been scuppered after its top shareholder signalled it will choke off further investment.
Spanish transport firm Ferrovial dealt a deadly blow to the Heathrow expansion by signalling it will not plough more money into the airport due to it yielding “low returns”.
The news was first reported by the Telegraph.
Ignacio Castejon, Ferrovial’s airport head, slammed the UK’s aviation regulator for blocking plans to hike Heathrow’s landing charges by 90 per cent.
As a result of the plans being scuppered, shareholders will have to absorb lower returns, Castejon said.
The decision has made Castejon “feel very sceptical about the appetite to contribute further capital into Heathrow.”