Runway disaster? (From The Argus)

Runway disaster?

12:10pm Tuesday 20th February 2007 in Business News By James Lancaster

Developers have submitted proposals to build 2,700 homes on land near Gatwick which had been earmarked for a possible second runway.

The move has panicked business leaders across Sussex who view future expansion of the airport as crucial to the long-term prosperity of the region.

A consortium of landowners, including Wimpey and Persimmon Homes, wants to develop land to the north east of the airport and has submitted outline plans to Crawley Borough Council.

The proposal was entered as part of consultation on the council's economic strategy for the town - the local development framework - which goes to public examination today.

In December last year, the Government announced its schedule for airport growth in Britain until 2015, which did not rule out the possibility of another runway at Gatwick. A new runway will be built at Stansted by 2011-12, depending on planning approval. A third will be built at Heathrow by 2015 if stringent environmental criteria are met.

If those criteria cannot be met, the Government will press ahead with a second runway at Gatwick to meet the huge anticipated growth in demand for air travel.

A runway would be built after 2019, when an agreement between airport operator BAA and West Sussex County Council banning a second runway comes to an end.

Mark Froud, chief executive of chamber of commerce Sussex Enterprise, said: "The council should only consider plans for new housing in the north east of Crawley after the Government has made its decision on airport expansion across the South East.

"Gatwick is the powerhouse of the Sussex economy and the impact on our competitive advantage would be significant if its ability to expand was put at risk.

"We have been saying for years that Gatwick is the top choice for airport expansion in the South East, both economically and environmentally.

"Without a thriving and developing international airport the Sussex economy will be devastated as businesses move elsewhere taking thousands of jobs with them."

A spokeswoman for Crawley Borough Council said it was unable to comment on the developer's application until the public examination process, which should last about six weeks, was completed.

BAA has been consulting with councils, residents and community groups in the Gatwick area to pave the way for a second runway which it hopes to build by 2023.

Company managers have draft blueprints for a new runway and terminal in a bid to increase capacity at the airport from 30 million a year today to 80 million passengers a year by 2030.

However, its ownership of the airport could be under threat.

The Office of Fair Trading is expected to refer BAA, which operates seven airports including Heathrow and Stansted, to the competition commission.

Airlines like British Airways and easyJet have called for a break-up of Britain's largest airport operator, claiming its monopoly discourages investment in the airports.