(MENAFN- ProactiveInvestors - UK) The controversial decision to expand Heathrow airport has been given the go-ahead but it could be nearly a decade before the extra capacity is up and running.
A committee of ministers agreed an £18bn scheme for a new third North West runway at Heathrow - it was one of three plans it was considering.
Heathrow had been the favourite location for the expansion rather than Gatwick.
Speaking in the Commons, Transport Minister Chris Grayling said the government believed the plan offered the greatest benefits to passengers, businesses, and the rest of the UK economy.
On the latter, the benefit is expected to be £61bn over the next 60 years. It will create 77,000 new jobs but spell the end of 800 homes.
However, the plan is still a very long way off becoming a reality.
MPs must still vote on it in around a year's time and that is likely to come after legal challenges from various groups and a public consultation.
The thorny issue of whether to increase Britain's airport capacity has divided opinion for a quarter of a century.
Supporters say it is vital to say Britain is open for business and boost its global ambitions, particularly after Brexit, while others say it is an economic and environmental mistake.
President of the CBI Paul Drechsler said it was good news for firms across the UK.
"This project should form part of a long-term framework for aviation capacity for the whole of the UK. Pressing ahead with key infrastructure projects like this will provide not only a welcome economic stimulus, but will show the world that we are well and truly open for business as we negotiate our exit from the EU," he said.
But chief executive at online estate agents eMoov.co.uk Russell Quirk pointed out it wasn't so great for hundreds of residents that will see their properties demolished.
Homeowners in Hounslow, Kew, Windsor, Maidenhead and other surrounding areas are also likely to to see the value of their property blighted, he said.
Research from Lloyds has shown that 37% of British exporters believe extra routes at their local airport would help them sell more goods and services overseas.
That figure rises to 43% among exporting businesses in London,
But the share price reaction from various companies didn't shout positive. Outsourcing group Capita (LON:CPI) today saw shares shed 0.08% to 615p despite it being touted as a big beneficiary of the new runway.
British Airways owner IAG (LON:IAG) flew 1.28% lower to 399.6p, while low cost carrier Ryanair Group Holdings (LON:RYA) lost 0.39% to 12.65p. EasyJet plc (LON:EZJ) was flat at 931.78p.
Objections to any expansion have been well documented and these voices are increasingly likely to be heard in coming months.
Foreign Secretary Boris Johnson and former London mayor is expected to call it a mistake and not in the capital's interests.
Justine Greening, the education secretary and Zac Goldsmith, Conservative MP for Richmond Park are also against.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.