BA mulls Stansted expansion challenge
Date: 01-Dec-03
Country: UK
Weekend press reports said the government would opt to build a new runway at Stansted after pollution concerns ruled out an expansion of Heathrow in the near future.
The reports said Transport Secretary Alistair Darling would pave the way for a new runway at Stansted, London's third airport located northeast of the capital, when he unveils his 30-year strategy for aviation next month.
BA pays landing fees at Heathrow, its international hub. It does not operate out of Stansted, which is used mainly by low-cost carriers such as easyJet and Ryanair.
A spokesman for BA said yesterday the airline was awaiting publication of the White Paper before declaring its intentions, but he repeated concern that expansion at Stansted would effectively be subsidised by users of Heathrow. Both airports are operated by BAA Plc.
"We don't think it would be financially viable to build another runway at Stansted without cross-subsidy," a BA spokesman told Reuters. "Our belief is that if that were the case it would be anti-competitive and definitely be something that would be open to challenge."
The UK government is considering its options on how to boost capacity over the next 30 years to cope with an estimated tripling in demand for air travel. The issue has been hotly contested by environmental groups, local residents and the industry.
Building a third runway at Heathrow would not be possible in the near future without breaching EU pollution rules, according to the reports.
"We do believe that all the environment issues linked to potential expansion at Heathrow can be overcome and that EU regulations on airports can be met," the BA spokesman said. He said modern aircraft were more environmentally friendly than older planes.
He said a decision to expand Stansted before Heathrow "would undermine Heathrow's position quite significantly" and potentially force travellers to take flights from other European cities such as Paris or Amsterdam.
BAA said the reports of an expansion at Stansted were speculative ahead of the publication of the White Paper.