Spain’s Ferrovial to Halt Funding for Heathrow: Sunday Telegraph
Spain’s Ferrovial to Halt Funding for Heathrow: Sunday Telegraph
(Bloomberg) --
Heathrow Airport’s top shareholder Ferrovial has signaled it will cut off new investment in the airport, dealing a “killer blow” to plans for a third runway, according to a report in the Sunday Telegraph.
Executives from the Spanish infrastructure company criticized the Civil Aviation Authority’s decision to block plans for a 90% increase in landing charges from next year. The regulator has proposed allowing charges to rise by up to 56% instead.
Ferrovial Portfolio Management Director Ignacio Castejon told the newspaper he was skeptical about the company’s appetite for future investment in Heathrow after the decision on landing charges, which he said would leave investors shouldering low returns.
The withdrawal of support by Ferrovial, which owns 25% of Heathrow, means that the third runway project is unlikely to go ahead, the report said. The expansion has also been threatened by the sharp drop in air traffic during the pandemic.
©2021 Bloomberg L.P.