PLANS to build a third runway at Britain's busiest airport Heathrow have been scuppered after its top shareholder signalled it will choke off further investment.

Spanish infrastructure investor Ferrovial dealt a deadly blow to the Heathrow expansion by signalling it will not plough more money into the airport due to it yielding "low returns". The news was first reported by the Telegraph.

Ignacio Castejon, Ferrovial's airport head, slammed the UK aviation regulator for blocking plans to hike Heathrow's landing charges by 90 per cent.

As a result, shareholders will have to absorb lower returns, Castejon said.

(c) 2021 City A.M., source Newspaper