BAA has launched a detailed consultation document on the location of the planned second runway and associated facilities at Stansted Airport.
The company also disclosed its latest estimates of the cost of the project, which show an almost 30 per cent reduction on the cost of the option shown in the Government’s White Paper on Air Transport.
The project, known as Stansted Generation 2, is now costed at around £2.7billion1, compared to a Government estimate of around £3.7billion for the construction of everything within the expanded airport boundary. It will deliver a two-runway Stansted, capable of handling around 76 million passengers a year by 2030.
Subject to planning permission, the additional capacity will be built in phases as passenger numbers grow. The first phase, costing approximately £1.7billion, would provide additional capacity for around 15 million passengers and includes the cost of acquiring the land, preparing it for the construction and the building of the second runway and airport facilities. This will build upon the 35 million a year capacity of the single-runway airport. Subsequent phases will cost a further £1 billion.
Mike Clasper, Chief Executive Officer, BAA Plc, said:
“We’ve worked very hard in the last two years to ensure that Stansted G2 will deliver great value to the UK economy, to our airlines and to people using the airport. We’ve also examined in great detail the environmental impacts of the project, in order to ensure that they are reduced as far as possible.
“The good news is that we’ve managed to reduce the costs of this project by nearly 30 per cent, compared with the Government’s original estimate. This confirms our view that Stansted G2 is a very deliverable project, given BAA’s track record on big construction projects like Heathrow Terminal 5.
“Now we’re ready to consult with local communities, airlines and other stakeholders to test our thinking and improve our plans, prior to their submission for formal planning approval in 2007. If the planning system works as it’s supposed to, and our regulator agrees a satisfactory pricing formula to remunerate our shareholders, the first phase of Stansted G2 can be operational by the end of 2013.”