New UK government kills third Heathrow runway

The UK’s new coalition government indicated last week that it will cancel plans for a third runway at London Heathrow and refuse additional runways at Gatwick and Stansted, stating that it is committed “to implement a full programme of measures to fulfill our joint ambitions for a low carbon and eco-friendly economy.”

The resolution was listed in the document setting out the accord between Conservatives and Liberal Democrats on a number of issues. The joint policy agreement also said the new government will replace the current and controversial Air Passenger Duty with a per-flight duty.

Responding to the plan to scrap LHR’s third runway, airport operator BAA commented that it “will work with the new government to ensure that airports policy provides the strong international trading connections on which the UK’s jobs and future competitiveness depend.”

British Airways told Dow Jones that it “remains of the view that a third runway at our national hub airport, Heathrow, would have very substantial economic benefits for the whole of the United Kingdom. The incoming government is well aware of our view but has taken a different position.”