By Paul Waugh Deputy Political Editor, Evening Standard (Newspaper)
24 January 2005 (Shortened version).
Government plans for airport expansion in the South-East looked to be in chaos today after secret Whitehall documents cast doubt on a new runway at Stansted.
The papers reveal that even the Treasury is worried the £2.6 billion Stansted scheme could be economically unviable because it could add up to £10 to ticket prices. Such a price rise would cause an exodus of no-frills, low-cost airlines from the Essex airport, ruining its future.
Ministers are keen to use Stansted to meet the rising demand for air travel expected over the next 20 years. A second runway could boost passenger numbers at the airport from 21 million a year to 80 million.
BAA, owner of Stansted, has said it could carry out the investment with fares rising by no more than "the price of a cup of coffee".
But the Whitehall memo, submitted-as evidence to a High Court challenge to the plans, shows the extent of senior civil servants' fears about the scheme.
Entitled "Financing New Runway Capacity At Stansted Or Heathrow - Key Messages", the document says the Treasury is "concerned that a new runway at Stansted might not be financeable" by the Department for Transport's favoured opening date of 2012.
Cheers,
White Cap
