Unlocking growth, delivering sustainability: London Stansted’s vision for the future
The last few months have seen the new government make clear what it thinks about aviation’s role in achieving its growth mission.
Through successive announcements about airport expansion, the Prime Minister, Chancellor and Transport Secretary have been among the senior Cabinet voices making clear a strong aviation sector is good for growth, and compatible with the country’s net zero ambitions.
As managing director of one of the major airport’s serving London, and with ambitious growth plans of our own here at Stansted, this is of great relevance and importance, not just to me but the whole team at the airport and across the region we serve.
The latest GDP figures published last month revealed the UK economy returned to growth in the last quarter of 2024, albeit by the smallest of margins and a long way short of where Chancellor Rachel Reeves needs it to be given it’s the government’s number one mission.
The data followed hot on the heels of the speech given by the Chancellor at the end of January, which talked about a new strategy for economic growth. In it, she said investment is the lifeblood of economic growth and specifically focussed on the role aviation can play.
After years of fence-sitting when it came to a government position on aviation, it is pleasing to see such clear statements of support. The Chancellor’s speech has been followed by various references from Cabinet Ministers, both in interviews and at dinners.
Naturally, I agree that airports are a significant driver of trade, investment and wider economic growth, both regionally and nationally. Stansted today serves 30 million passengers a year, provides more than 12,000 jobs and supports thousands of young people through our extensive educational and training schemes
And what is exciting to me is the potential to get on and deliver even greater benefits right now. While the debate around new runways at other London airports continues, we have readily available capacity we plan to unlock through a £1.1bn investment in our infrastructure over the next five years.
Those plans – unveiled at the government’s International Investment Summit last October – include an extension to our existing terminal and a range of other improvements, as well as flagship sustainability projects like the creation of a new 14.3MW solar farm.
In parallel, we recently completed a consultation on our long-term plan for sustainable growth at the airport up to the 2040s. It sets out how we intend to make best use of our runway and how we will manage the impact of the airport’s operation on local communities in the decades ahead.
As part of this plan, we are proposing to submit a planning application within the next few months to increase the airport’s annual passenger limit up to 51 million passengers, from the 43 million it stands at today.
All of that is without any increase in the number of flights that the airport is already permitted to operate and within the existing airport boundary. Our ability to grow to 51 million is a result of airlines planning to use larger models of modern, efficient aircraft than previously forecast, enabling more people to fly on each plane and meeting additional passenger demand with flight limits remaining unchanged.
The reason the aircraft flying from Stansted are fuller is because passengers are drawn to our fantastic choice of destinations, our simple and easy experience and the great value we offer.
That is appealing to people from across London and the South East, as well as to millions of visitors to the UK each year, who either travel here as tourists or visit friends and family.
Looking to the future, one key driver for our forecast growth is our unique location at the heart of the UK Innovation Corridor (UKIC), stretching from London up to Cambridge. This corridor has generated 25% of England’s new knowledge intensive jobs since 2016 and is rapidly emerging as a powerhouse in sectors including artificial intelligence, life sciences, and digital technologies.
We recently signed a strategic partnership with UKIC to help support the growth and development of the region, bringing together businesses, government and other organisations to drive innovation, job creation and boost international connectivity.
This partnership will help drive both sustainable growth and innovation and can be a catalyst for route development connecting the airport and the region to key markets in the US, China, India and beyond – which will bring greater benefits and commercial opportunities to those who chose to live, work or grow their business in the corridor.
Another critical aspect of our proposed growth is how cost effective providing our additional capacity is in comparison to other schemes in the London system. We are rigorous on our capital expenditure and operating costs to retain our agility and cost competitiveness in the market.
While it is positive to see government acknowledge aviation growth is compatible with its net zero goals, it would not be right to skirt over the subject of decarbonisation.We recently signed a strategic partnership with UKIC to help support the growth and development of the region, bringing together businesses, government and other organisations to drive innovation, job creation and boost international connectivity.
This partnership will help drive both sustainable growth and innovation and can be a catalyst for route development connecting the airport and the region to key markets in the US, China, India and beyond – which will bring greater benefits and commercial opportunities to those who chose to live, work or grow their business in the corridor.
Another critical aspect of our proposed growth is how cost effective providing our additional capacity is in comparison to other schemes in the London system. We are rigorous on our capital expenditure and operating costs to retain our agility and cost competitiveness in the market.
While it is positive to see government acknowledge aviation growth is compatible with its net zero goals, it would not be right to skirt over the subject of decarbonisation.
We recently signed a strategic partnership with UKIC to help support the growth and development of the region, bringing together businesses, government and other organisations to drive innovation, job creation and boost international connectivity.
This partnership will help drive both sustainable growth and innovation and can be a catalyst for route development connecting the airport and the region to key markets in the US, China, India and beyond – which will bring greater benefits and commercial opportunities to those who chose to live, work or grow their business in the corridor.
Another critical aspect of our proposed growth is how cost effective providing our additional capacity is in comparison to other schemes in the London system. We are rigorous on our capital expenditure and operating costs to retain our agility and cost competitiveness in the market.
While it is positive to see government acknowledge aviation growth is compatible with its net zero goals, it would not be right to skirt over the subject of decarbonisation.
We, like the government, recognise that this growth needs to be sustainable, and decarbonisation is a key route to which we can ensure the industry meets the connectivity needs of travellers for business and leisure, while remaining compatible with the country’s net zero ambitions
The industry remains hugely focused on the need to achieve net zero by 2050, with a clear roadmap in place to deliver that.
At an airport level, we are committed to achieving net zero operations by 2038, addressing environmental issues such as energy use, waste, water use, nature, and pollution prevention.
To conclude, airports are wonderful engines of growth, not just for the economy, but for the communities they serve and the people who work at them – and I look forward to driving forward that growth agenda in the months ahead.
Gareth Powell, Managing Director London Stansted Airport