the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects



Workforce development 


Business &

Property &
Development sites




Consultation opportunities

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton

© Brighton & Hove
Business Forum

News - 15 May 2005
Too much expansion, too far, too soon?

Setback for Stanstead

British Airports Authority (BAA) has suffered a setback for its plans to expand Stansted. What does this mean for Gatwick?

The Civil Aviation Authority (CAA) which regulates BAA’s spending has withdrawn approval for £105m of expenditure on planning for the second runway at Stansted, over half of which was earmarked for the purchase of houses affected by the expansion plans.

The approval for this expenditure was withdrawn earlier this year so this isn’t news but now the watchdog has decided it will hold a new six month consultation process because it is worried that it hasn’t capture the views of all the interested parties.

Existing airlines using Stansted are jubilant because they maintain that plans for a new runway and terminal building at the airport are too expensive and will drive up charges. Profits at Stansted are expected to have risen to about £55m from £39m last year when BAA announces the figures later in the week.

BAA’s ambitions for expansion of Stansted, the schedule for which has already slipped from a target of 2011 to 2013, are now mired in the row over how the £4bn cost will be funded.

They have issued a warning that the timetable could slip by several years more unless they are allowed to cross-subsidise the cost with a £1 levy on passengers using Heathrow and Gatwick. This is currently not allowed under CAA guidelines.

Airlines currently using Stansted are appalled at the scale of BAA’s plans and have accused the Authority of ‘gold plating’ the scheme which, they maintain, would be wasted on most of the cost-conscious travellers who pass through the airport.

An additional runway is estimated to cost in the region of £90m but BAA are also proposing taxiways that will cost an additional £420m, a terminal expansion at a cost of £1.2bn and transport improvements that will add £670m.

No frills airlines EasyJet and Ryan Air have threatened to abandon the airport because charges will increase from just under £3 per passenger to as much as £8, which they claim will more than wipe out their average profit of £2.50 per customer. Since they currently represent 80% of Stansted’s traffic their departure would turn the airport into a very expensive white elephant.


If Stansted is rejected as a suitable airport for expansion it leaves only a few stark choices for the expansion of capacity in the south-east: either build a new airport, which will be highly controversial, hope that Heathrow meets is emission control targets by 2011, which seems increasingly unlikely, or expand Gatwick. Gatwick is a key driver for the south-east economy and its expansion would be good news for Brighton & Hove and the rest of the region. Any cross subsidy of Stansted from Gatwick would not meet with the approval of the business community in the Gatwick/Brighton & Hove area.

Read related items on:
British Airports Authority
Civil Aviation Authority

Browse our business Knowledgebase or search by keyword


15 December 2017
Brighton is among the best places to start a business due to their strong growth factors
15 December 2017
GTR consultation ends 20th Dec 2017 13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop 12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs 11 December 2017
City Centre Vacancy Rates Drop Slightly From Sept 5 December 2017
Innovate UK Announces Sector Competitions in Manufacturing and Infrastructure Systems 5 December 2017
GDPR, steps to early compliance 1 December 2017
The 29th Sussex Business Awards 2017 Winners Announced 1 December 2017
Old tech gear? Give IT a new lease of life 29 November 2017
Driving for Better Business Campaign launches 29 November 2017
ARKA Funerals sponsor Burning the Clocks 2017 with 'In Memory' lanterns 27 November 2017
Govia Thameslink launches third consultation phase on once-in-a-generation timetable restructure 23 November 2017
Coast to Capital Launches Brighton Mainline Alliance 22 November 2017
Calling all UK companies that have transport, parking and commuting issues to address 15 November 2017
Start-up Challenge Business Competition Offering £10,000 Investment to Young Entrepreneurs 15 November 2017
IUK Announces £10 Million Innovation Loans Infrastructure Systems Funding Competition for UK SMEs 15 November 2017
Sussex Food and Drink Grand Finalists Celebrate Success 10 November 2017
Meaning conference confirms speaker line-up: breeding a new army of business activists 10 November 2017
Positive body image documentary screening at Hove school 8 November 2017
Material Practices: Painting and Printmaking at the University of Brighton - Private View 8 November 2017
Economic Partnership kick starts city strategy consultation 8 November 2017
GTR respond to positive ASLEF referendum result 7 November 2017
350th employer signed up to the Brighton & Hove Campaign 7 November 2017
Rampion announces £4 million community fund 6 November 2017
The First Gamification Conference comes to Brighton 3 November 2017
Shoreham Port Welcomes New Commercial and Operations Director 2 November 2017
Burning the Clocks launches Crowdfunder for 2017 2 November 2017
The Gatwick Diamond Business Awards are now open for Entries 31 October 2017
Brighton Based Paxton Open New Centre for Technology & Innovation 27 October 2017
Adventures in risk taking for high growth businesses 27 October 2017
Can your business benefit from offering a 'world of work' experience? 27 October 2017
The Small Business Saturday Bus Tour launches across the UK for its fifth year 24 October 2017
Business Networking & Case Study Visit with the Sustainable Business Partnership 24 October 2017
Could you use an Energy Saving Workshop? 17 October 2017
Peter Blake raffle raises £2,290 for Middle Street School 17 October 2017
AMEX named major sponsor of city's bike share scheme 16 October 2017
Ropetackle Business Friends scheme 4 October 2017
BTN BikeShare: a successful first month 3 October 2017
PLATF9RM open at Hove Town Hall