EXCLUSIVE: Luton Airport owners reveal latest plans for expansion bid

London Luton Airport Ltd (LLAL) is the airport company for whom Luton Borough Council is the majority shareholder.

LLAL had been due to submit its expansion bid to the government in June, but has announced this will now be submitted in 2021.

The new proposals pledge to make Luton Airport the UK’s" most sustainable airport" over the next 20 years, as well as supporting the local economy.

LLAL says its bid will support expansion of the airport from 18 to 32 million passengers per year (mppa). The airport owners had originally proposed increasing capacity to 38 million passengers with 240,000 flights by 2050.

Cllr Andy Malcolm, chairman of LLAL and also Luton Borough Council’s portfolio holder for finance, said: “We are an airport owner entirely focused on supporting and improving people’s lives, and driving economic and employment growth, both in Luton and neighbouring communities.

“Since the second public consultation on our expansion proposals late last year, we have been listening carefully to feedback.

"[There is] a clear message that people want us to go even further to mitigate environmental issues, including noise, air quality and particularly climate change which has become significantly more important to people since our first consultation.

“We are also acutely aware that Covid-19 has sadly impacted on every area of people’s lives and wellbeing, and the effects on aviation have been stark.”

Cllr Malcolm added: “We are confirming today that we want to set out a plan for how London Luton can build on its position as arguably the most socially conscious airport in the UK by also becoming its most sustainable.

“This is the right thing to do to support Luton, the region and the environment.

"We are instructing our teams now to invest all the time they need to work up the proposals in detail.”

Graham Olver, LLAL’s chief strategy officer, said LLAL will look afresh at every aspect of sustainability in the running of the airport.

He said: “We are serious about this. Our leading social credentials are demonstrated by the annual dividend that supports frontline council services in Luton, and by our investment of more than £130m into key voluntary and charity services since 2004.

“Whether it’s funding care services for vulnerable children, ensuring our local foodbank can support those most in need or helping community groups respond to coronavirus with our emergency funding, this is what our entire focus is all about.

”Our task will involve both re-imagining our proposals for expansion, and also working closely with the support of our operator and other partners to look at how the airport and existing infrastructure in Luton operates today.”

LLAL insists it was already working ahead of the recent court ruling against Heathrow's third runway to consider how expansion of London Luton Airport can meet the terms of both the Paris Agreement and the recommendations of the Committee on Climate Change.

Mr Olver said: “Our work will be crucial to support Luton Council’s target to deliver a zero-carbon town by 2040, significantly ahead of the government’s target for the UK as a whole.

“We know a key ingredient will be to work with many partners including the council, highways authorities and public transport providers on an integrated and sustainable public transport system serving the area around the airport.

“There are many other parts to the puzzle too, and we know there is much more work to be done to support our goal. At the moment it is therefore right that we invest all the time we need on this.”

LLAL is currently working to support its operating company and airlines with safe travel and passage through Luton Airport.

At the same time, shareholder Luton Borough Council is preparing an emergency budget with cuts of up to £22m to deal with the loss of airport-related income, as well as costs incurred due to coronavirus.

Cllr Malcolm said: “Since 2013 Luton’s ongoing investment in the airport has delivered a £21m increase in yearly revenue to Luton Council, moving from historically about £6-7m a year to £27m last year.

"This enabled the council to protect our town from the high tide of austerity.

"Sadly, coronavirus means our communities will now feel the full weight of central government cuts.

“Prudent investment in our stewardship of the asset, even after costs incurred, has been key to achieving this increased income and maintaining it will continue to be essential to deliver benefits to future generations.”

Mr Olver added: “As a key driver of the economy and already supporting 27,000 jobs across the region, we see it as our duty to protect livelihoods and be at the centre of the recovery process after Covid-19 for the industry and the economy as a whole.

“We will continue to keep our communities, neighbours and stakeholders informed as details of our proposals are worked up.”