Last checked at 
LONDON (Alliance News) - The independent Airports Commission on Wednesday gave its backing to the expansion of Heathrow airport after concluding that the move would deliver the most economic benefits to the UK, a move supported by trade bodies who called on the British government to act quickly to implement the recommendations.
The move was welcomed by trade bodies and by budget carrier easyJet PLC, though Irish budget carrier Ryanair Holdings PLC said the proposal does not go far enough and will not solve the capacity squeeze in the south east, while Gatwick Airport's chief dug in his heels and said his airport remains in the race.
The commission, set up in 2012 and led by economist Howard Davies, said a third runway at Heathrow, with a ban on night flights, would be the best way to boost the country's economy and secure the UK's future as a prominent player in the global aviation market.
The report said the third runway at Heathrow, the most expensive and the most politically controversial of the three options tabled to expand airport capacity in Britain, would generate up to GBP147 billion for the economy over 60 years and create 70,000 new jobs by 2050.
The recommendations from the commission said the proposal to extend Gatwick, a less politically contentious idea, was "plausible" but said that failing to expand Heathrow would put the UK aviation sector's position at risk. The third option, which was to extend one of Heathrow's two existing runways, also was rejected.
Davies did, however, say that the expansion of Heathrow should only proceed with a "significant package of measures" to mitigate the impact of another runway on local communities and the environment. That would include a ban on all flights between 1130 pm and 0600 am, a legally binding cap on noise levels, a levy to fund more generous compensation for those living under the flight path, and an independent noise regulator.
"This debate has never been about a runway, it's been about the future we want for Britain. Expanding Heathrow will keep Britain as one of the world's great trading nations, right at the heart of the global economy. Our new plans have been designed around the needs of local communities and will meet carbon, air quality and noise targets, and provide the greatest benefit to the UK's connectivity and its long term economic growth," said John Holland-Kaye, the chief executive of Heathrow Airport.
Stewart Wingate, the chief executive of Gatwick Airport, was defiant following the report, saying the commission's findings made it clear that an expansion of Gatwick is deliverable and claiming his airport is "still very much in the race".
"It is for the commission to make a recommendation but it is of course for the government to decide. So we now enter the most important stage of the process. We are confident that when the government makes their decision they will choose Gatwick as the only deliverable option," Wingate said.
UK Transport Secretary Patrick McLoughlin, speaking to parliament on Wednesday, said the task facing the government will be to "balance local interests against the wider, longer term benefits for the UK." "We will come back to Parliament in the autumn to provide clear direction to everyone on the government?s plans. This is a vital moment for the future of our aviation industry. All those with an interest in this important question are expecting us to act decisively," he added.
The British Chambers of Commerce said businesses in the UK will be pleased that the Airports Commission has finally published its recommendations and said firms across the nation want to see an "irreversible government commitment to a new runway at Heathrow by the end of 2015, with planning complete and diggers on the ground by the end of this parliament in 2020."
"The ball is now firmly in the government?s court. If ministers duck this decision, and delay airport expansion for yet another generation, British businesses and our overall competitiveness will pay the price," said John Longworth, director-general of the BCC. "Business long ago ran out of patience. The government cannot afford to delay airport expansion any further if it is serious about Britain punching above its weight on the global stage."
The Confederation of British Industry, another trade body, backed the BCC's view, saying the UK government "must commit to the decision now" and start working on expanding Heathrow. John Cridland, the outgoing director-general of the CBI, who will be replaced later this year by Carolyn Fairbairn, said expanding capacity in the south east of England "is absolutely critical to the whole of the UK?s economic future."
"Each day the government delays taking the decision, the UK loses out as our competitors reap the rewards and strengthen their trade links. Creating new routes to emerging markets will open doors to trade, boosting growth, creating jobs and driving investment right across the country. Our research shows that eight new daily routes alone could boost exports by up to GBP1 billion a year. The UK?s economic future cannot be kept waiting on the tarmac any longer. By taking the decision now, the government can send the message, loud and clear, that Britain is open for business," Cridland added.
The BCC and CBI's calls for the government to act quickly and enact the recommendations in the report also was backed by the Trades Union Congress. Frances O'Grady, general secretary of the TUC, said the government needs to act to implement the findings, "not let them sit in archives, gathering dust".
A further call for expediency also was issued by the Institute of Directors, which said it "warmly welcomes" the commission's report. "This is the issue that has been kicked down the road time and again, but there can now be no further delay from politicians. Sir Howard has left the government with no excuse to put off this vital decision again, and if ministers do not proceed with all possible speed, it will send a clear signal that the UK is not interested in being a modern, outward-looking, trading nation," said IoD Director-General Simon Walker.
FTSE 100 budget carrier easyJet welcomed the report, and Carolyn McCall, its chief executive, said the airline "agrees that expansion at Heathrow will provide the greatest passenger and economic benefits, including lower fares by opening up the airport to increased competition."
"Expansion at Heathrow must be delivered sustainably. Local noise and environmental impacts need to be addressed and easyJet supports the commission?s recommendations on these issues. We now urge the government to quickly proceed with the commission?s recommendation and start the work to increase the aviation capacity for the UK," McCall added.
But Kenny Jacobs, the chief marketing officer Ryanair, offer a more radical solution to the capacity squeeze. Jacobs said in response to the commission's report that the Irish budget carrier backs an even bigger three-runway solution, by which Heathrow, Gatwick and Stansted would be able to build three competing runways and which would involve politicians being taken out of the process.
Jacobs said the company thinks this would solve the capacity issues facing the South East for the next century and would allow competition between the airports to deliver this capacity efficiently.
"Ryanair believes that the proposed Heathrow runway - which won't be delivered for 10 or 15 years - won't solve the runway capacity crisis in the South East," Jacobs said. "It remains a fact that additional runways in Stansted and Gatwick can and will be delivered much earlier than any Heathrow third runway."
Shares in easyJet were up 4.0% on Wednesday afternoon, while Ryanair shares were up 3.8%. Shares in International Consolidated Airlines Group, the owner of British Airways, which is based at Heathrow but which has yet to make a comment on the commission's report, were up 2.4%.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
