London Heathrow Airport has announced plans for a ?10 billion investment to improve the airport but wants to increase airport charges to largely fund the scheme.

The privately owned UK hub said that the five-year plan would include creating new space within its existing terminals and improve its ¡°operational resilience¡±.

Heathrow said that while its owners would be putting ?2 billion into the project, it would also have to increase its landing charge from the current average of ?28.46 per passenger (between 2022 and 2026) to ?33.26 per passenger (from 2027 to 2031), which would be a 17 per cent increase.

Airlines were quick to criticise Heathrow¡¯s proposed rise in charges, with Virgin Atlantic saying it will be ¡°ultimately consumers and airlines that pay the bill¡±. Although Heathrow argues that the proposed charge of ?33.26 ¡°remains below 2014 levels in real terms¡±.

The airport said that the project, which will run from 2027 to 2031, would create extra terminal space ¡°equivalent in size to 10 football pitches¡±, and allow it to add new lounges, shops and restaurants.?

It is not connected to Heathrow¡¯s plan to build a third runway, which secured UK government support earlier this year but is not expected to be built until 2035 at the earliest.

¡°The changes will make Heathrow a more enjoyable, resilient and efficient hub for millions of passengers each year,¡± added the airport in a statement.

Work will include a redevelopment of the Central Terminal Area, as well as the demolition of the disused former Terminal 1 building and an extension of Terminal 2.

Heathrow, which is already operating at close to capacity, said that the terminal improvements would eventually allow it to cater for another 10 million passengers per year, a rise of 12 per cent on its current capacity.

Thomas Woldbye, Heathrow¡¯s CEO, added: ¡°To compete with global hubs, we must invest. Our five-year plan boosts operational resilience, delivers the better service passengers expect and unlocks the growth capacity airlines want with stretching efficiency targets and a like-for-like lower airport charge than a decade ago.¡±

While airlines agreed that Heathrow needed to improve its customer experience, they were unhappy about the proposed rise in airport charges, which are regulated by the UK¡¯s Civil Aviation Authority (CAA).

"Heathrow is already the most expensive airport in the world and this proposal demonstrates Heathrow's inability to invest capital wisely and efficiently,¡± said a Virgin Atlantic spokesperson.

"Therefore, we continue to call on the CAA to undertake an urgent fundamental review of Heathrow's economic regulatory model, which is simply not fit for purpose."

A spokesperson for British Airways¡¯ owner IAG also called the proposed increase in Heathrow¡¯s charges ¡°excessive¡±.

"The suggested ?10 billion investment would be paid for by passengers and airlines, raising serious concerns about affordability and value for money," added the spokesperson.