UK government could still reject Heathrow expansion

Significance

Heathrow has been losing out to European competitors in terms of airline connectivity, and cannot maintain its regional dominance if its expansion is delayed much longer. The obstacle to expansion is now political: the project faces significant opposition within the governing Conservative Party.

Impacts

• There is a strong economic case for expansion at either Heathrow or Gatwick.
• Heathrow expansion will be a major issue in next year's London mayoral election.
• All European airports are facing airspace congestion and infrastructure constraints that limit expansion.
• This will give rapidly expanding Middle Eastern airlines and their hub airports a large competitive advantage.