BAA to provide £1bn upgrade to Heathrow’s Terminal 2

11 Aug 2009

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Heathrow owners, Spanish Grupo Ferrovial owned-BAA, have said that they will provide a £1bn makeover for the airport's second terminal, which will enable it to handle 30 million passengers a year. The upgrades will be part of ongoing improvements at Heathrow and will be paid for out of BAA's regulatory entitlement.

A spokesman for BAA pointed out that Terminal 2 "was designed for a fraction of the number of people that now use it – in simple terms, it is too small".

It also denied that the opening of the improved Terminal 2, expected by 2013, would lead to a greater number of flights over London and west Berkshire. It said the airport's capacity was already at 99 per cent.

This was in response to renewed fears among residents' groups that the revamp will be used to raise the number of flights to and from the airport.

BAA said the development of T2, which will be home to Star Alliance airlines, was crucial for Heathrow to remain competitive.

Meanwhile, in a separate development BAA provided a cheer of sorts to the aviation industry yesterday when it reported that the falls in traffic figures seen in recent months had slowed at all of its UK airports in July.

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