Luton Airport expansion plans shelved

Expansion plans at Luton Airport have been shelved because of the high cost of building a new runway.

The major expansion development, which included a 950-metre replacement runway and new terminal building, will not be taking place anytime soon as planned.

TBI, which operates Luton Airport, is set to review plans and publish new framework proposals later this year to develop the site by 2015.

Luton Airport is the capital's fourth busiest, behind Heathrow Airport, Gatwick Airport and Stansted Airport and has a selection of airport hotels and airport parking zones to help it cope with around nine million flyers a year.

It has seen a surge in passenger numbers in recent times, with the growing popularity of low-budget carriers easyJet, Thomson and Monarch essential components to its success.

TBI chairman, Demetrio Ullastres, said: "We are committed to the delivery of facilities that meet the needs of our customers and at the same time fulfil our shareholder expectations.

"Therefore, we have decided that our proposals should focus on making the most of the existing airport site."