Things are heating up at Heathrow, not just because of the £5 coffees. Sir Richard Branson, never one to play it small, could soon be running his own terminal at London’s flagship airport. That’s right: the Virgin Atlantic founder might trade Upper Class pyjamas for terminal signage if Heathrow gives in to mounting pressure from airlines to ditch its tightly held monopoly.
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Who Wants What, and Why?
Virgin Atlantic and British Airways, usually frenemies at best, are now surprisingly aligned in their frustration. Both airlines are fuming about Heathrow’s sky-high landing fees and the lack of control over how the airport is run. Currently, Heathrow calls the shots on terminal management, investment decisions, and, most controversially, how the upcoming third runway might be funded.
The idea on the table? Handing over operational control of a terminal to a third party, just like what’s happening across the pond at JFK, where Delta and American Airlines have been given the reins (and runways) on their own turf.
Enter Branson
Virgin CEO Shai Weiss dropped the bombshell in a joint Sunday Times interview with IAG boss Luis Gallego: Sir Richard Branson is keen to run one of Heathrow’s terminals himself, likely as part of a consortium of investors.
This wouldn’t just be a branding bonanza (Terminal V, anyone?); it would also give Virgin the power to shape everything from check-in counters to lounge design. No more competing with BA for space in Terminal 3.
Power to the Airlines?
Weiss and Gallego want more than just a vanity project. They’re demanding seats at the table where the big-money decisions are made. Specifically, they’re calling for an airline committee to vote on capital expenditures, aka the big-ticket investments that determine what Heathrow becomes next.
Gallego was blunt: “We want to bring competition to Heathrow to challenge it to be efficient.” Translation? Stop blowing billions on terminals nobody asked for, and start listening to the airlines that pay the bills.
The £64 Billion Elephant in the Room
That would be the proposed third runway, a project Heathrow estimates could cost anywhere from £20 billion to a frankly unhinged £64 billion. Weiss didn’t mince words: “Shareholders pay for it upfront. But then, guess who pays for it in the long run? Virgin Atlantic, British Airways and the rest of us.”
Under the current regulatory model, those costs risk being passed directly onto airlines (and ultimately passengers) through higher fees. That’s the core gripe here: Heathrow charges top dollar, yet the airlines say they see little in return.
Heathrow’s Pushback
Heathrow isn’t taking this lying down. A spokesperson admitted that “adjustments to the regulatory model will be needed” to get the third runway off the ground, but slammed the idea of letting airlines run terminals independently.
Their argument? Siloed terminal management would lead to “self-interested, short-term decision making” and more complexity than a Ryanair boarding pass. Heathrow insists its own £12 billion of private investment over the past decade shows it’s serious about infrastructure, innovation, and value.
So, What Now?
We’re at a crossroads. The UK government’s third runway green light has reignited long-standing grumbles from airlines, travel retailers, and just about anyone who’s ever paid £9.95 for a soggy wrap at T5. If Branson gets his wish, Heathrow could go from monopoly operator to something more like JFK with each airline king (or queen) of its own castle.
And if that happens, don’t be surprised if your next Virgin flight departs from a terminal decked out in mood lighting, stocked with free-flowing champagne, and playing “Space Oddity” on loop. Terminal B might just stand for Branson.
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