Walsh raps Heathrow plan

WILLIE Walsh, the boss of British Airways owner IAG, has attacked plans for Heathrow’s third runway, saying its costs would be ‘outrageous’.

Walsh said the recommendation of the third runway at Heathrow by the Airports Commission, chaired by Sir Howard Davies, had ‘glossed over’ the affordability issues and said the plan relies on airlines funding it.

He said the scheme involved ‘extremely expensive infrastructure that will not be fit for purpose,’ and added: ‘I don’t think it is right that we lock future generations into inefficient, expensive infrastructure.’

The commission estimated the third runway would cost around £17bn, which would be funded by higher landing charges to airlines. IAG is the largest airline at Heathrow and will soon have more than 55pc of the slots. Walsh said he did not support expansion at Heathrow or Gatwick, and suggested Heathrow’s expansion would mean airport charges could increase by 50pc and would be passed on to passengers.

His comments came as he reported a 25pc leap in second-quarter pre-tax profit to £315m. IAG recorded an 11.2pc rise in revenue to £3.95bn.

The firm said its £1bn takeover of Irish airline Aer Lingus was on track and more than 60pc of shareholders had accepted the offer – excluding Ryanair which has committed to selling its 29.9pc stake.

IAG last year said that if it hits its 2015 targets it will pay a maiden dividend, but it made no update yesterday. Shares slipped 8p to 534p.