New runway capacity 'needed' in South East

Sir Howard Davies: 'Inefficient capacity' for air traffic

Related Stories

The south-east of England will need more runway capacity in the years to come, the head of the Airports Commission has said.

In a speech, Sir Howard Davies set out the commission's "developing views" on the UK's future airport capacity needs.

He said the "provisional conclusion" was that extra runway capacity would be needed in the South East over the coming decades.

To rely on existing runways would lead to "a distinctly sub-optimal solution".

In a speech, Sir Howard said the demands on the UK's busiest airports were likely to continue to grow "even if we take a more conservative view of future aviation demand than the Department for Transport has in the past".

He said that the commission thought it was difficult to see how the free market alone could resolve the capacity-demand imbalance in the South East.

Regional airports are already serving their local markets effectively but it is difficult to see how they can absorb all the excess demand, he said.

"Taken together, these considerations point to the need for new runway infrastructure in the south-east of England in the coming decades," he said.

The Airports Commission was launched on 2 November last year, with the aim that it should produce a full and final report no later the summer of 2015, which would be after the next general election.

Sir Howard, a former director general of the CBI and ex-head of the Financial Services Authority, said: "Our final conclusions will certainly not please everyone. I am sure about that."

Labour had approved an extra, third runway at Heathrow airport, but this plan was abandoned by the coalition Government when it took power in May 2010.

Since then, the debate about airport capacity has continued, with Mayor of London Boris Johnson proposing a new airport, while other people have called for expansion at either Stansted or Gatwick.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    'HAIRY HIPSTERS' 06:58:
    Hipster olympics Berlin

    Wake Up to Money speaks to some "hairy hipsters" in London's trendy Shoreditch. One claims to spend "as little as possible" on grooming. Martin Wood, from IRI says there has been a decline in the sales of razor blades. Those who do shave are doing it less frequently, perhaps because they work from home and the expense is an issue too, Mr Wood says.

     
  2.  
    END OF QE 06:52: BBC Radio 4

    Andrew Wilson of Goldman Sachs Asset Management tells the Today programme Wednesdays US Federal Reserve announcement on interest rates was "largely as expected". It reiterated that it will raise interest rates once a "considerable time" has passed after its stimulus programme ends in October. "Essentially it looks like 1.5% interest rates by the end of next year," he says.

     
  3.  
    ALIBABA SHARE SALE 06:30: Radio 5 live

    "You are getting a taste of the future," says Gordon Barber, from the centre for digital business at the University of Salford on Wake Up to Money. He browses the Alibaba website in his spare time. He says it can give an insight into where high street technology products will be in one or two years time.

     
  4.  
    ALIBABA SHARE SALE 06:16: Radio 5 live

    "Investors are punch drunk with new issues," says Justin Urquhart Stewart, co-founder and senior partner of Seven Investment Management on Wake Up to Money. He says that recent shares sales have been "overpriced" and "oversold". He adds investors want to wait until shares settle down before investing in firms like Alibaba.

     
  5.  
    ALIBABA SHARE SALE 06:10: Radio 5 live
    Alibaba HQ

    The BBC's Ali Moore in Singapore explains the extent of Alibaba on Wake Up to Money. It owns China's biggest online shopping site. It has an online payment system. It owns 35% of a department store chain and it wants a banking licence. But she says the firm does not face massive competition in its home market, so it's not clear how it will do outside China. Its shares are expected to be priced after the US markets close on Thursday.

     
  6.  
    PHONES 4U RESCUE 06:02: Radio 5 live
    Phones 4U store

    Bondholders "were extremely angry over what happened," says Justin Urquhart Stewart, co-founder of Seven Investment Management Wake Up to Money. He's referring to the collapse of Phones 4U. Its private equity owners took more than £200m out of the firm by loading it with debt. Now those holders of debt are offering to take a loss to keep the business going.

     
  7.  
    06:01: Matthew West Business Reporter

    Morning folks. As always feel free to get in touch either on email bizlivepage@bbc.co.uk or on twitter @bbcbusiness.

     
  8.  
    06:00: Ben Morris Business Reporter

    A group of Phones 4U creditors are offering a deal to help revive the firm, and find out why you should care about Alibaba. Stay with the Business live page.

     

Features

From BBC Capital

Programmes

  • Cinema audienceClick Watch

    Brighter 3D films - the new laser-based system promising to deliver crisper, clearer movies

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.