In a significant development for the U.K. infrastructure and airlines, Transport Secretary Heidi Alexander has given the green light to a £2.2 billion (USD $2.9B) London-Gatwick Airport expansion. The project would be funded privately and would involve making the airport’s northern standby runway operational.

Its approval comes after a thorough planning process and addresses initial issues raised by the planning inspectors. Gatwick, which is already Europe's largest single-runway airport, will push the northern runway 12 meters north so that both runways can operate at the same time, fulfilling safety requirements. 

The strategic play, which could see annual passenger numbers surge from a record 46.5 million last year to as many as 75 million, with up to 100,000 extra flights per year by the late 2030s.

The government has hailed the project as a “no-brainer for growth,” with officials emphasizing how it could not only expand business and trade but also tourism. 

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The extension will support 14,000 new jobs and add £1 billion to the regional economy each year. The project’s timeline is ambitious, as planes could be flying out of the new runway before the next general election, which may come as soon as 2029.

The choice, however, has been hailed by industry and government but condemned by environmentalists and local activists. The Green Party leader, Zack Polanski, has called the approval a “disaster,” adding that more carbon emissions and noise pollution are inevitable.

Gatwick has proposed a package of measures in answer to these. The airport will upgrade the noise insulation of affected homes, including triple-glazed windows, and help pay for impacted people to move.

This includes covering the full stamp duty as well as some moving costs. The plans also include a commitment to increase the percentage of passengers who travel by public transport, with 54% of people on day one at the new runway expected to use public transport.

The nod to expansion at Gatwick adds to the government’s backing for a third runway at Heathrow, a signal of a broader approach by ministers to accelerate larger infrastructure schemes as economic drivers. But the Gatwick proposal is unique in that it is far cheaper and based on pre-existing infrastructure. 

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It can be delivered quickly and at a lower cost, with less environmental disruption.

The £2.2 billion plan will be funded by the airport’s owners, VINCI Airports and Global Infrastructure Partners. Critics, such as local aviation and environmental groups, have said they planned to appeal the decision through a judicial review.