Piece in the independant about Luton expansion. However, no mention of NOW . . .
TBI wants Luton to match Heathrow
By Michael Harrison, Business Editor, Independant.
11 June 2003
TBI, the owner of London Luton, is to put proposals to the Government calling for an increase in the airport's capacity to 60 million passengers over the next 30 years.
This would make Luton the same size that Heathrow is at present and would require the construction of a second runway and a new passenger terminal.
However, TBI believes the ambitious expansion programme is justified by the rapid growth of low-cost air travel and Luton's role as an important hub for no-frills carriers.
Both Ryanair and easyJet operate from Luton and the Irish carrier is shortly expected to announce an increase in flights from Luton. Ryanair is also set to launch services from TBI's Belfast International airport to several Continental destinations.
Luton handled 6.6 million passengers last year and is forecast to handle 9 to 10 million a year within the next two to three years. The Government's recent consultation document on runway capacity in the South-east said there was the potential for 31 million passengers at Luton but ruled it out as a potential site for a further runway in favour of the three BAA airports Heathrow, Gatwick and Stansted.
But Keith Brooks, TBI's chief executive, said: "All the traffic growth should not go to the monopoly operator BAA. Luton has good infrastructure, a local community which is supportive of increased capacity and it is a recognised low-cost airport whereas we are seeing the demise of full-service airlines in the UK."
This year full-service airlines will only account for 16 per cent of TBI's passengers, compared with 31 per cent two years ago. Low-cost carriers, by contrast, will account for 63 per cent of passengers compared with 39 per cent in 2001.
TBI's pre-tax profits plunged 38 per cent last year to £10.2m because of the change in its airline customer base. Low-cost carriers pay only half the landing charges of the full-service airlines they have replaced. However, Mr Brooks said he expected to see revenues rise in line with traffic this year.