Luton airport expansion raises bar for community-driven infrastructure assets

London Luton Airport and its owners Luton Rising have welcomed Government approval for the airport to increase annual passenger capacity from 19 million to 32 million passengers.

Luton Rising is the Luton Council owned economic development company whose assets include the airport, the Luton DART passenger transit system and a number of commercial properties.

Works covered by the planning approval include new terminal capacity, additional taxiways and other transport infrastructure, the construction of landside support buildings, surface access adjustments, mitigation works and other associated development. 

Luton Rising is solely owned for community benefit and claims to be “by far the most socially impactful airport in the country”. The growth plans set out to balance the significant economic growth opportunity with “some of the most robust, far-reaching and comprehensive commitments to sustainability introduced at a UK airport”, including a legally binding and independently monitored framework with limits on noise, airport carbon emissions, air quality and surface access under a ‘Green Controlled Growth’ model.

Creating up to 11,000 new jobs and unlocking an additional £1.5 billion in the economy every year, the plans will deliver one of the largest construction programmes for the town and wider region in recent years, while providing funds to boost Luton Council’s investment in frontline public services and local communities.

Since 2013, significant investment made by the Aena and InfraBridge owned airport operator London Luton Airport Operations Limited (LLAOL), has delivered the fastest growth period in the airport’s history, with annual passenger numbers rising from 10 million in 2013 to around 18 million today.

Over this period, LLAOL has provided over £0.5 billion in concession fee income to Luton Rising, contributing to investment in local community causes, including frontline council services.

Alberto Martin, Chief Executive Officer, London Luton Airport said, “We welcome today’s approval from Government, which now provides Luton with a generational opportunity to transform the town and our region's economy. Once complete, these plans will generate an additional £1.5 billion for the economy every year and create up to 11,000 jobs. Our priority now is to finalise a commercial agreement with Luton Council to renew our successful partnership so together we can deliver on the Government’s growth policy, and make the expansion plans a reality as soon as possible. This will put Luton at the heart of a collective mission to achieve sustainable economic growth.”

Rodrigo Marabini Ruiz, Director of International Subsidiaries at Aena said, “Increasing the airport’s capacity by 70% sustainably will require an investment and operating partner with specialist skills and expertise and, as the world’s largest airport operator, we are ready to support Luton’s next chapter. The airport contributes a sizeable proportion of Luton Council’s revenue each year, and we are proud to operate one of the UK’s most community-driven infrastructure assets that is focused on making a positive impact for that purpose.”

Graeme Ferguson, Head of Airports at InfraBridge said, “Together, InfraBridge and Aena are committed to building on the airport’s success, providing the expertise and capital required to deliver new infrastructure and achieve an ambitious passenger target that closely aligns with the government’s growth mission. Our successful public-private partnership with Luton Council has driven exceptional outcomes for Luton and all users of London Luton Airport, including our airline partners who will benefit from enhanced efficiency and increased capacity under these expansion plans.”

Paul Kehoe, Chair of Luton Rising, said the granting of development consent by the Transport Secretary Heidi Alexander “enables us to continue detailed planning for the next chapter in the success story of London Luton Airport. The benefits are clear. At a new capacity of 32 million passengers per year, our scheme will deliver up to 11,000 new jobs, additional annual economic activity of up to £1.5bn, and up to an additional £13m every year for communities and good causes. By introducing maximum limits for the airport’s noise, operational greenhouse gas emissions, air quality and surface access impacts, we also believe that our Green Controlled Growth framework represents the most far-reaching commitment to the sustainable operation of an airport ever put forward in the UK. We would like to thank the many thousands in the local and business communities who have supported us in successfully making the case for growth.”

Rachel Hopkins MP for Luton South and South Bedfordshire described the announcement as "a clear example of how a Labour Government will stimulate economic growth in communities like Luton, while remaining firmly committed to meeting our environmental responsibilities.”