BAA announced yesterday that it is to stop work on its planning application for a third Heathrow runway, while withdrawing its second runway application at Stansted Airport.

The airports company also plans to stop buying properties/houses in Sipson, after a period of notice. In line with assurances given to local residents in 2009, Heathrow will continue to consider buying properties which have been issued with a bond under its long-term property market support (PMSB) scheme until 22 June 2010.

Colin Matthews, BAA's chief executive officer, said: ‘We recognise the importance of government policy in a matter as significant and controversial as runway capacity.

NEW GOVERNMENT POLICY ON AIRPORTS
‘The policy intentions of the new government are clear and it is no longer appropriate for us to purchase properties. Equally important is our intention to stand behind our commitment made to provide time for those local residents who wish to sell their properties to us, to do so.’

At the same time, BAA also announced yesterday that it is dropping its second runway planning application at Stansted Airport. BAA says this follows a clear indication that government airports policy will change, following the recent general election. Stansted will also withdraw, with immediate effect, the provision for assisted relocation within the home owner support scheme introduced at Stansted in 2004.

However, in line with assurances given to local people, the airport will proceed with the purchase of eligible properties currently going through the process, where it can be demonstrated that the owner is marketing or has marketed the property, and has not been able to agree a sale.

David Johnston, Stansted Airport's Managing Director, said: ‘We have reflected carefully on the new government's clear intention to change its airports policy and have moved quickly to withdraw this application.

‘Stansted Airport is a key driver of economic growth in this part of England, and we will continue to work hard to bring new business here and to work with our neighbours, and the wider community, to provide jobs and strong business and travel opportunities in the months and years ahead. We continue to believe that new airport capacity is needed in the south east of England, to strengthen the UK's international trading links.’

Meanwhile, in a separate development, local authorities have cleared plans to expand Bristol Airport in western England, to allow it to almost double the number of passengers it handles. North Somerset Council said yesterday that it will allow the airport to increase capacity to handle 10m passengers a year by 2019-20, up from around 6m at present.

Bristol Airport is jointly owned by Australia's Macquarie and Ontario Teachers Pension Plan and is the ninth largest in the UK.