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Stansted runway cost below govt estimates
Web posted at: 12/10/2005 0:59:40
Source ::: Reuters
LONDON: British airport operator BAA Plc estimated the cost of a second runway at Stansted airport near London would be 30 per cent below earlier UK government forecasts yesterday, but failed to ease fierce opposition from airlines to the plan.
BAA estimated the cost of the runway and other airport facilities would be £2.7bn ($4.7bn) compared with a 2003 government forecast of £3.7bn.
The company, which also owns London’s Heathrow and Gatwick airports, said it would cost £1.7bn to add capacity for 15 million extra passengers by 2013 under the project’s first phase.
Another £1bn will be needed in further phases to more than double the airport’s capacity to 76 million passengers a year by 2030.
BAA said the estimates for its preferred option for expanding the airport, released ahead of a three-month consultation period, would be more environmentally-friendly and would use less land than previously expected.
However, airlines including low-cost carriers Ryanair and easyJet — main users of Stansted — remain opposed to the possible costs of the plan, saying in a joint statement it was “deeply flawed and misleading”.
The £2.7bn figure “excludes hidden costs, bringing the total bill to around £4bn,” they said in a statement.
British Airways Plc said it would oppose any move to increase charges at Heathrow and Gatwick to pay for the Stansted expansion.
The government has backed plans for a second runway at Stansted as part of a 30-year strategy to cope with soaring demand for air travel, particularly in Britain’s crowded south-east.
In a 2003 report it put the project cost at £3.9bn, which BAA said fell to £3.7bn after stripping out the cost of improved rail and road links.
The first phase of the project is due to be ready by 2013, more than a year behind the government’s deadline.
Under the latest BAA proposal, the runway will be 3,048 metres long, compared with the government’s estimated 3,400 metres.




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