LONDON – Policies unveiled by the new ruling coalition government in the U.K. Wednesday will prove a mixed bag for the air transport industry, with the previous government’s plans for a new runway at Heathrow airport now scrapped, while airlines will be taxed per plane rather than per passenger.
The previous Labour government had approved plans for a third runway at Heathrow, London’s main airport that is owned by Spain’s Grupo Ferrovial SA. The airport, the world’s busiest international passenger airport, is running at 98% capacity and Labour had backed calls from airlines and the business community that an expansion was necessary to contribute to economic growth. However, the new Conservative and Liberal Democrat coalition has backed arguments by environmentalists that a third runway isn’t necessary if a better high-speed rail link is built linking parts of the U.K.