Study seeks London airport expansion

Congestion at airports could cost airlines and passengers more than £5 billion a year by 2015 if plans to expand London's airports…

Congestion at airports could cost airlines and passengers more than £5 billion a year by 2015 if plans to expand London's airports are stopped due to environmental concerns, a study said today.

Congestion already cost £1.7 billion in 2005, the report by Oxford Economic Forecasting said. The study is backed by the aviation industry.

The study said the proposed airport expansion would boost the economy by £13 billion a year.

Airlines, industry groups and airport operator BAA released the study as part of their fight against growing pressure to reduce aviation emissions and scale back plans to expand key London airports.

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The British government has backed plans for a second runway at Stansted by 2012 and a third runway at Heathrow - but not before 2015. The expansion plans have been strongly opposed by local residents and environmental groups.

British Airways chief executive Willie Walsh said a campaign to stop expansion at Heathrow was short-sighted. He also called on the government not to tax airlines to offset carbon emissions.

"There is no evidence that additional taxation will do anything to improve the environmental performance of aviation," Mr Walsh said following reports the government may propose raising air passenger duties in its pre-budget report due Wednesday.

Airport operator BAA, which is owned by Spain's Ferrovial, said Heathrow would lose competitive ground to Amsterdam, Paris and Frankfurt if it did not expand.