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Expansion Of London Airport - Comparative Study Of Heathrow & Gatwick

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Added on  2020-02-05

Expansion Of London Airport - Comparative Study Of Heathrow & Gatwick

   Added on 2020-02-05

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London airport expansion (Heathrow airport):What happens next
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Feasibility of expansion of Heathrow airport..............................................................................3Impact on environment................................................................................................................7Impact on local communities.....................................................................................................10A balanced approach to expansion ...........................................................................................12CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................162
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INTRODUCTIONThe present essay deals with expansion of London Airport: what happens next. It is basedon comparative study of two selected airports of London; Heathrow and Gatwick. The studyreflects that one of these project should be selected in order to ensure economic development ofnation and meeting changing preferences of tourists or visitors (Déniz and Dorta, 2014)..However, presently these two airports are consumers till their 85% capacity. Accordingly to this,it can be assumed that they remain occupied during peak times. This aspect create difficultiesaviation industry to satisfy need and expectations of their buyers. The issue is also faced by longhaul in managing their business due to less capacity at biggest airport. However, these long haulcarriers operate their business in accordance with high demand of services in the marketplace.The selection of airport is based on several aspect which are explained as follows. Itassists researcher to provide the suggestion related to best alternative for the project so that allactivities related to project can be completed in stipulated time span. The studies show that dueto less capacity of current airports fare of air services are increased and aspect of connectivity isreduced to a great extent. Owing to this, it becomes necessary for government of UK to expandtheir project related to airport where customers can get good quality of services. On the otherhand, the expansion of this airport is feasible for economic development of UK. This supportgrowth of different industries of UK. Owing to this, it becomes imperative fro government ofnation to give approval for expansion proposal of project.Feasibility of expansion of Heathrow airportThe report of OEF depicts several benefits of aviation industry of country. For example,gross domestic product for the year was 1.1% in 2004. Also, during that time total 186000people were employed in the industry. It can be critically evaluated that expansion of Heathrowconsists of several factors such as expensive, highly problematic for construction industry.Though, the project will be financed by private sector where aviation industry get higher rate ofreturn and increased flow of production. This aspect tends to increase number of buyers becauseafter implementation of new project there will be no cancellation of tickets. It has been foundthat plan is costly and will give rise to loss of several homes (Jones and Dunse, 2015). At thisjuncture proper compensation plan have also been decided which aid to cater need of localcommunity and provide them relief. However, short-termism is the feasibility problem of plan.3
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On the contrary, demand of expansion of Heathrow is at center so that accordingly public can getquality services. This is because this particular airport is used at its full capacity which createissues in several aviation corporations to manage their business. Furthermore, it has been found that Heathrow project is directly linked to long haul linksto new market thereby economic benefit can be derived to a great extent. It has been expectedthat project could generate £17bn and increment in gross domestic project by £150 bn over 60years (Heathrow expansion ‘best option’ but Gatwick runway ‘plausible’, 2016). Not only thisbut 70000 new jobs will be created in nation which will again prove to be effective for economicdevelopment of country. On the other hand, selection of Gatwick was not done due to its focus on short-hauldestinations. Though, this project was required the loss of 167 homes which is more effectivethan Heathrow. However, overall benefits of project are greater than other one. Furthermore, thepresent project estimated to bring £5.5bn economic profit till financial year 2020-2080 ofaviation industry. Though, there is less number of buyers due to recession but expiry of recessionperiod will automatically increase demand of aviation services. Presently, less capacity of airportcreate barriers for aviation industry to connect with cities of UK. Apart from this, in casegovernment does not immediate action to increase capacity of airport then it will createcompetition of national air industry (Dancey, 2014). However, project seems a bit less feasiblebecause of estimated impact on environment. The reason behind selection of expansion ofHeathrow is benefits to different parties like customers, domestic organizations and long haulairlines. It is the well-known fact that selected airport is largest and most valuable in the worldwhich affect overall economic growth of country.The studies revealed that more than 70% of freight from long haul is provided by thispresent runway of Heathrow. It indicates that expansion will definitely support economy ofnation which in turn prove to be effective for overall nation (Hobbs, 2014). For example,European competitors like Paris Charles de Gualle and Amsterdam Schiphol can be beaten afterimplementation of new project. It is because UK will be become more capable to handleoperation of aviation industry thereby customers will be satisfied by accessing services of localas well as nation flights.4
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