London Luton Airport Limited (LLAL), the company that owns the airport, and London Luton Airport Operations Limited (LLAOL), the airport’s operator, have signed a contract to enable London Luton Airport to continue to be managed, operated and developed by LLAOL through to 2031.

The contract follows the signing of a head of terms commercial agreement by the two parties in June 2012 and the decision by the airport’s owner and operator to integrate LLAL’s futureLuToN:Optimisation programme with LLAOL’s plans to increase passenger capacity at London Luton Airport.

The signing of the contract between the owner and operator is to be followed by a planning application later in the autumn, which will be lodged by LLAOL and will be subject to the statutory consultation process including public consultation by the Local Planning Authority.

Any increase in capacity at the airport will take place within the existing boundary and use the existing runway.

Passenger through-put generates income in the region of £10m to Luton Borough Council that is critical for maintaining services to its community and supporting its capital programme. Current revenue provides a further £14m invested in local communities through supporting charitable organisations. Income would increase with future passenger growth.

Cllr Robin Harris, chair of LLAL, said: “Given London Luton Airport’s position as the single biggest asset owned by the people of Luton, this agreement and its potential benefits for wealth in the region’s economy are momentous. LLAL is delighted at this step forward and at the benefits it will bring to London Luton Airport and to the region’s residents.”

Glyn Jones, Managing Director of LLAOL, the company that operates the airport, said: “The agreement will allow LLAOL to continue the successful work which we have been carrying out at London Luton Airport since 1998. Last year the airport was the UK’s fastest growing major airport and this agreement will enable both parties to continue to deliver sustainable growth together, developing the airport in a positive way for partners, residents and passengers.”

London Luton Airport is the UK’s fifth biggest airport. It is a headquarters for easyJet and is a major base for Wizz Air, Ryanair and Monarch. The airport continues to be the largest employer in the Luton area.