UK Prime Minister Sir Keir Starmer has unveiled a major five-year investment plan for London Stansted Airport. The £1.1 billion project, announced on October 14, aims to create over 5,000 jobs. The announcement was welcomed by Chancellor Rachel Reeves and Transport Secretary Louise Haigh. This significant investment will significantly bolster the UK’s aviation sector and stimulate economic growth.
The ambitious plans were revealed at the prestigious international investment summit in London. They outline a comprehensive strategy to enhance Stansted’s capabilities and international reach. Central to this vision is the extension of the existing terminal by a third. This is a move that will significantly increase the airport’s capacity to handle passenger traffic. This expansion will unlock the runway’s full potential. It will allow for more frequent flights and the accommodation of larger aircraft types.
One of the key benefits of this expansion will be the establishment of new air routes. These will operate to both key business hubs and popular holiday destinations.
This enhanced connectivity will not only provide more options for travelers but also strengthen the UK’s position in global trade and tourism. The ripple effects of this expansion are expected to boost local supply chains. It will create opportunities for businesses in the surrounding areas and contribute to regional economic development.
The airport authorities have strategically allocated the £1.1 billion investment to various aspects of the airport’s infrastructure. They have earmarked £600 million for the terminal extension project. This will involve not only increasing the physical size of the terminal but also modernizing its facilities to improve efficiency and passenger comfort.
Airport planners will dedicate the remaining £500 million to improving the existing terminal and wider airport estate. This will serve to maintain Stansted’s competitiveness in the aviation market. In line with growing environmental concerns and sustainability goals, the investment plan includes the development of a 14.3MW on-site solar farm.
This renewable energy source will play a crucial role in supporting the airport’s current and increasing electricity demands. The solar farm initiative follows the recent addition of a new EV charging forecourt at the airport.
Manchester Airports Group (MAG), the owner of London Stansted, is currently in the final stages of the procurement process for this ambitious project. The group expects to commence the construction phase in 2025. The entire project is estimated to take between two and three years to complete. This timeline reflects the scale and complexity of the planned improvements.
It’s worth noting that the expansion plans have already secured the necessary planning permissions to begin construction. Moreover, they align with previously agreed passenger and flight numbers, ensuring that the growth is managed and sustainable.
A primary focus of the expansion is to significantly improve the passenger experience at each stage of their journey through the airport. The plans include the construction of a larger security hall, which will help streamline the security process and reduce waiting times.
An upgrade to the airfield taxiway will improve aircraft movements. This will potentially reduce delays and increase operational efficiency.
The project also includes a comprehensive overhaul of gate rooms, designed to boost both capacity and comfort for passengers before boarding. These improvements will be significant for the millions of passengers who pass through Stansted each year.
Transport Secretary Louise Haigh emphasized the government’s steadfast commitment to helping British businesses grow and boost the UK’s economy. She stated, This announcement is a clear signal that Britain is open for business.
Transport is central to this Government’s core mission of growing the economy. This is about giving companies like Manchester Airports Group the confidence to invest, boosting regional and national economic growth.
Ken O’Toole, CEO of MAG, highlighted the far-reaching benefits of the investment. By investing more than £1bn in Stansted over the next five years, we will be able to connect people and businesses in London and the east of England to even more global destinations. We are proud to be investing in our infrastructure in a way that will create jobs and stimulate trade, investment, and tourism.
Cath Bowtell, IFM Investors Chair, expressed confidence in the project’s long-term value: As co-owners of MAG, our commitment to this exciting new Stansted project reflects our confidence in the airport’s future growth story. This transformative project promises to solidify London Stansted Airport’s position as a key player in the UK’s aviation sector and economic growth. It sets the stage for a new era of air travel in the region.
