The CEO of the International Airlines Group (IAG), Willie Walsh, has threatened to move some British Airways (BA, London Heathrow) operations to either Dublin International or Madrid Barajas should the UK government proceed with plans to expand London Heathrow.

During a speech at the Aviation Club in London last week, Walsh said government's GBP17.6 billion (USD26.7 billion) plan to expand Heathrow would lead to a doubling of passenger charges, which currently sit at GBP40 (USD60.68) for a return journey. This would then render Heathrow a less attractive destination and point of transit for passengers.

"Heathrow is not IAG's only hub," he said. "We can develop our business via Madrid, which has spare capacity, and Dublin, where there are plans for a cost-effective and efficient second runway."

Walsh added that the new third runway would only cost 1% of the quoted total with the rest inflated by added infrastructure such as a new terminal, an underground rail spur and an GBP800 million (USD1.2 billion) car park.

Though the Davis Commission, in July, came out in full support of an expanded Heathrow, Whitehall, on Friday, deferred a decision on the airport's expansion until next summer at the earliest pending further investigations into the project's environmental impact.