Insight

Clear for Take Off

The Growth Implications of Runway Expansion

25 Oct 2016

The Government has announced its support for a new runway at Heathrow subject to a compensation and mitigation package for local communities. The additional capacity will support six new connections to regional airports.

Government announced its decision to expand airport capacity in the South East of England at Heathrow to “better connect the UK to long haul destinations in growing world markets, boosting trade and creating jobs”.

The proposal selected is a new Northwest runway at Heathrow Airport, the same that had been recommended in the Airport Commission’s Final Report in July 2015 “to maintain the UK’s position as Europe’s most important aviation hub”.

The Government estimates that the economic impact of the Heathrow expansion will add up to £61 billion increase in GDP and 77,000 direct and indirect jobs over the next 14 years.

The expansion will improve the UK national and international connectivity: six additional routes (Belfast International, Liverpool, Newquay, Humberside, Prestwick and Durham Tees Valley) will be delivered to connect regional airports to the expanded airport, bringing the total number of domestic routes to 14. In line with the Airport Commission’s recommendations, the Government made clear that Heathrow’s expansion “will only be allowed to proceed on the basis of a world class package of compensation and mitigation worth up to £2.6 billion” and it will propose a ban on scheduled night flights, whose length will be determined through consultation. 

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