Heathrow Expansion Early Cost Recovery Draft Decision
Summary
The UK Civil Aviation Authority has published a draft decision allowing Heathrow Airport Limited to recover early expansion costs incurred during 2025 and 2026, capped at £320 million (2024 prices). Heathrow West Ltd may recover up to £4.3 million of early costs incurred up to 25 November 2025. The proposals include consumer protections: an independent technical expert for monitoring, transparent cost reporting requirements, and reopening mechanisms for future changes.
What changed
The draft decision establishes the regulatory framework for early cost recovery by Heathrow Airport Limited (HAL) and Heathrow West Ltd related to Heathrow capacity expansion. The £320 million cap applies to HAL's efficient early costs incurred during 2025 and 2026, while Heathrow West Ltd's recovery is limited to £4.3 million for costs through November 2025. The consultation proposes consumer protections including independent technical expert oversight, mandatory transparent cost reporting, and reopening mechanisms should circumstances change.
Airport operators and aviation sector participants should monitor this consultation closely. HAL will need to prepare detailed cost documentation supporting its efficiency claims. Third-party investors or promoters considering airport expansion schemes should understand the regulatory conditions under which early costs may be recovered. Responses to the consultation must be submitted before the summer 2026 final decision.
Archived snapshot
Apr 20, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
The UK Civil Aviation Authority has today announced its draft decision on the regulatory treatment of early costs incurred by potential promoters of expansion at Heathrow airport.
The draft decision, which is now subject to statutory consultation, confirms the aviation regulator’s intention to allow Heathrow Airport Limited to recover efficient early costs incurred during 2025 and 2026, up to a cap of £320 million (2024 prices).
This would allow Heathrow Airport Limited to have the resources necessary to continue its work on expanding the airport. Early costs include planning and design costs which are needed to develop a credible expansion scheme at Heathrow, including preparation of material to support a future Development Consent Order application.
The decision would also allow Heathrow West Ltd to recover up to £4.3 million of early costs it had incurred up to 25 November 2025, when the UK Government announced Heathrow Airport Limited’s proposals as its preferred scheme to expand capacity at Heathrow. This is consistent with the regulator’s statutory duty to, where appropriate, promote competition in the provision of airport operation services.
As well as the cost cap, the regulator’s proposals outline strong consumer protections including the appointment of an independent technical expert to provide ongoing monitoring and assurance; requirements for the transparent reporting of costs; reopener mechanisms should there be a future change of circumstances, and a further efficiency review of these costs.
Following consideration of responses to this consultation, in the summer of 2026 the regulator will publish its final decision on early costs recovery and a statutory notice on the necessary modifications to Heathrow Airport Limited’s Licence.
- CAP3238 Draft Decision on the regulatory treatment of early costs of capacity expansion at Heathrow airport, April 2026
- Capacity expansion: Information relating to our work on Heathrow capacity expansion
Latest news
News from UK Civil Aviation Authority
- Aviation regulator publishes draft decision on Heathrow expansion early costs recovery
- Published on:
20 April 2026
- Category: News Item
- Published on:
07 April 2026
- Category: News Item
- Published on:
31 March 2026
- Category: News Item
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