Rejection Of Third Runway For Heathrow Causes Airport To Be Less Competitive

London, England, United Kingdom (AHN) – BAA Chairman Sir Nigel Rudd blamed the decision of the British government rejecting the Heathrow Airport operator’s application for a third runway for making the gateway less competitive.

Rudd said the political decision made Heathrow a second tier global airport. He pointed out the decision would translate into Heathrow’s share of international passengers decreasing, while other major gateways in Europe are expanding.

He said despite future operational improvements in Heathrow, the British gateway would remain a second tier airport.

British Airways, one of the two major airlines using Heathrow, supported BAA’s push for a third runway, which would provide very substantial benefits for the nation. BAA’s major investors, Spanish firm Ferrovial and the Government of Singapore Investment Corporation, also disagreed with the British government’s decision to reject BAA’s application for a third runway.

Heathrow announced on May 24 that it will stop working on pursuing a third runway application after the coalition government’s decision and will stop buying properties in Sipson.

BAA Chief Executive Officer Colin Matthews said then in a statement, “The policy intentions of the new government are clear and it is no longer appropriate for us to purchase properties. Equally important is our intention to stand behind our commitment made to provide time for those local residents who wish to sell their properties to us to do so.”

However, Matthews added, “Heathrow plays an important role for the U.K. and supports thousands of jobs. We continue to believe that new capacity would strengthen the U.K.’s trading links with the global markets on which our economy and our competitiveness depend.”

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