Heathrow hotel tycoon Surinder Arora reveals new alternative expansion with one terminal 'campus'

Heathrow's biggest landlord Sunder Arora has released another alternative plan for Heathrow Airport's Expansion.

The Arora group claims that its plan will cost "under half" as much as the current Heathrow Airport Limited Scheme and will focus on a "Western Hub".

The plan would see all terminal activity focused to a single "campus", to the west of the airport, between Terminal 5 and the M25.

Hotel tycoon Sunder Arora believes that by not having to redevelop the existing terminals 1 and 2, the airport will not only avoid costs, but also extreme disruption.

The cornerstone of the businessman's plan is that the airport is currently being run as a monopoly, with the government only recognising Heathrow Airport Limited as having the "sole right to undertake Heathrow expansion". Arora's plan also has the backing of both British Airways and Virgin Atlantic .

The airport operator's current plan has the support of the government, and a vote expected to carry through before Parliament's summer recess will give the operators outline planning permission for expansion.

The cost of expansion is currently estimated at £14 billion, but the Arora group labels the figure "misleading, arguing that it doesn't take into account the need to accommodate the additional passengers.

Arora believes the real Heathrow expansion figure will be more like £31 billion, but says his plan will cost just £14.4 billion.

Mr Arora said: "Heathrow has been in monopoly control for too long and our proposals show what can be achieved through an alternative approach and Heathrow fully welcoming competition."

The tycoon, who held his first job at the airport as a 16-year-old baggage handler but now, at the age of 60, is worth £800 million according to the Asian Business Awards.

A spokesman for British Airways' parent company IAG urged the Government to allow third parties to run terminals at the west London hub.

He said: "The Arora proposal looks very interesting and deserves to be properly evaluated so that customers can get the best facilities at the most affordable price."

Virgin Atlantic chief executive Craig Kreeger described Heathrow expansion as a "once-in-a-generation opportunity" to challenge the status quo.

"Arora have developed a plan that will bring down the cost of construction and inject competition at the UK's hub airport," he said.

"At first look, this plan appears to be a credible alternative.

"Virgin Atlantic believes passionately in the benefits of competition to consumers, so we urge all involved in Heathrow expansion to give the Arora plan serious consideration."

Despite the airport partnering with Mr Arora in the past over various projects, Heathrow Airport Limited CEO John Holland-Kaye has blasted the new proposals, saying they show a "complete lack of understanding of airport operations".

Heathrow CEO John Holland-Kaye said: “We welcome the fact that the Arora Group support a northwest runway at Heathrow, but we’re bemused that they have chosen now to release new plans which look a bit like the emperor’s new clothes – the more you look, the less there is to see.

"Not only do their proposals now cost more, but they show a complete lack of understanding of airport operations and disregard for those living closest to the airport.

"If these were serious plans, they should have been submitted for public scrutiny to the independent Airports Commission years ago, along with 50 other competitive proposals. The fact that Mr Arora didn’t do so then, makes you question his motives now.

“I have met with Mr Arora several times to see how we can work together to deliver the integrated hub airport capacity that Britain needs. Each time he has refused to engage with us.

"We have now set up a competitive process for potential partners to make a material contribution to expanding Heathrow in a way that is sustainable, affordable and financeable.

"If Mr Arora really wants to help make Heathrow the best connected hub airport in the world and keep Britain at the heart of the global economy, this is his chance to do so.”

Mr Arora revealed a £ 10billion plan last-year for airport expansion , however a new revised plan has been published with significant modifications.