Heathrow’s newly appointed chair has begun discussions with airlines and billionaire property developer Surinder Arora in an effort to calm a dispute that risks causing further delays to the £49bn proposal for a third runway at Europe’s busiest airport.

Philip Jansen, who took up the role earlier this year, is believed to have met with major carriers and with Arora, who is promoting a rival £25bn expansion blueprint, to explore compromise solutions in an ongoing disagreement over costs and service standards.

Last week, the former BT chief executive and Heathrow’s CEO, Thomas Woldbye, held talks with International Airlines Group, the parent company of British Airways.

British Airways is the dominant airline at Heathrow, controlling more than half of the airport’s take-off and landing slots. IAG’s chief executive, Luis Gallego, has insisted that spending on the third runway and related infrastructure should not exceed £30bn.

Jansen has also reportedly met representatives from Virgin Atlantic and Arora, a hotel magnate who has long accused Heathrow of overcharging passengers, airlines and retailers through steep fees.

British Airways, Virgin Atlantic and Arora are members of Heathrow Reimagined, a campaign advocating for a significant reduction in the airport’s operating costs. These airlines, along with several major US carriers, have made clear they will not endorse expansion plans at any price.

Heathrow is widely regarded as Europe’s costliest airport. In March, the UK’s aviation regulator turned down proposals to substantially increase landing charges to finance a multibillion-pound upgrade programme.

According to a source close to the discussions, there is broad agreement among airlines and stakeholders on the long-term economic importance of a third runway. However, opinions diverge over how it should be delivered and funded. Airlines are pushing for the lowest achievable costs, while others argue the project can be executed more efficiently. All parties recognise that cooperation will be necessary to find a workable path forward.

The chancellor, Rachel Reeves, has expressed strong government backing for the expansion, committing to begin construction before the next general election. The project has faced decades of debate and opposition over financial, environmental and community concerns.

In November, ministers supported a plan targeting a 2035 opening date for the new runway, favouring Heathrow’s proposal over the competing scheme from Arora Group. Heathrow is still seeking full planning approval with the aim of starting construction by 2029.

The airport is owned by an investor consortium led by the French firm Ardian, alongside sovereign wealth funds from Qatar, Singapore and Saudi Arabia.

China Investment Corporation, which holds a 10% stake in Heathrow, is reportedly weighing a sale of its shares amid concerns about escalating costs linked to the expansion, according to reports.

A Heathrow spokesperson said Philip Jansen, in his new capacity as chair, is engaging with key stakeholders across the airport community. Strengthening relationships, particularly with airline and commercial partners, is seen as crucial to achieving shared objectives of improving customer experience and ensuring the airport remains fit for the future.

Jansen has developed a reputation for bridging divides in complex corporate situations.

During his tenure at BT, he secured approval for £15bn in investment to expand full-fibre broadband nationwide after years of industry disagreement, pledging rapid progress to address the UK’s lagging connectivity.

More recently, advertising group WPP appointed Jansen as chair at the start of last year, a move that was followed by the departure of chief executive Mark Read as the company began restructuring under Cindy Rose, a former Microsoft executive.

In a related development, Aviation Services UK, representing ground-handling firms including Menzies, Swissport and Dnata, has written to aviation minister Keir Mather warning that the sector could require financial support similar to the Covid furlough scheme if widespread flight cancellations occur this summer due to fuel shortages.

The ground-handling industry, which oversees baggage operations and check-in services and employs around 30,000 staff, is paid based on aircraft movements and scheduled routes.

The challenges of cutting and subsequently rehiring staff—who must undergo extensive security clearance to work at airports—were highlighted during the pandemic, when labour shortages contributed to significant disruption as travel demand rebounded.