The UK’s Civil Aviation Authority (CAA) has proposed forcing Heathrow Airport Limited (HAL) to allow rival developers — such as the Arora Group — to bid for the right to design, finance, build, and operate a new terminal (and potentially parts of the third runway) in direct competition with Heathrow at its London airport.

The CAA, the aviation regulator, has put forward proposals that could force Heathrow Airport to open parts of its major expansion project to competition from rival companies. This move aims to control rising costs and better protect the interests of passengers, airlines, and businesses. Heathrow’s planned £33 billion (US$44 billion) expansion, which includes a third runway and a new terminal, has raised concerns that it could make the airport even more expensive to use than it already is — it is currently one of the world’s costliest major airports.

One of the most significant ideas from the CAA is to allow rival developers to bid for the right to design, finance, build, and operate a new terminal. Under this model, the rival firm (potentially the Arora Group) would directly compete with Heathrow Airport Limited (HAL) by offering services to airlines and collecting revenue from them. This would introduce direct competition at the airport itself. The regulator is also considering tighter controls on Heathrow’s spending to prevent excessive cost increases.

This development comes after the UK government chose Heathrow’s own ambitious expansion plan in November over a cheaper alternative proposed by the Arora Group. Heathrow wants a longer third runway that would require major infrastructure changes, including moving part of the M25 motorway and building a road tunnel. Arora’s plan featured a shorter runway at a lower overall cost without needing to alter the M25.

The CAA is now launching a public consultation on these regulatory options. The government hopes to reach a final planning decision on the expansion by 2029. If approved and built, the project would dramatically increase Heathrow’s capacity to around 150 million passengers per year.