CAA says more runways needed

The Civil Aviation Authority has said that more runways are needed in the South East to avoid long term damage to UK economy.

The report also says consumers would be faced with higher fares and less choice without additional capacity, saying that fares could rise by £10 a journey without extra capacity being built, reports the FT.

The report seems timed to influence the new aviation consultation paper due to be published by the Department for Transport in the spring. It is expected to include options for increasing airport capacity in the south-east, although these are limited by previous Coalition decisions ruling out extra runways at Heathrow, Gatwick and Stanstead.

The CAA suggests in its report that those living near airports could be compensated for increased noise by a council tax reduction.

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