Government decision to rule out extra runway - 2 February 1995

Airport operator BAA plc today welcomed the Secretary of State for Transport's
decision to drop the additional runway option at Heathrow and to rule out the
development of a second major runway at Gatwick.

Today's announcement reflects the argument BAA put forward in response to the
report of the working party into runway capacity in the South East (RUCATSE).

The Company has consistently argued that, at Heathrow, it is terminal space and
not runway capacity that is needed to cope with future demand for air traffic well
into the next century. The decision strengthens the case for Terminal 5 which will
optimise the use of Heathrow's existing runways.

The invitation to study other options, such as a close parallel runway at Gatwick,
offers a constructive approach to meeting the challenge of accommodating
growth in air travel while minimising the effect on local communities.

Chief Executive Sir John Egan said "Today's announcement is a positive step
and I very much hope that this decision will completely reassure local residents
around Heathrow that Terminal 5 will not lead to another runway. It is now vital
that the new terminal is built to enable us to realise the full potential of the
existing runways in the South East and delay the need for further runway
capacity. Now that this major threat has been removed from Heathrow, local
residents should feel able to re-examine the Terminal 5 case and judge it on its
own merits"

Note to editors:

1. RUCATSE was set up by the Government in 1991 as an independent working
group to study runway capacity in the South East and to advise the Secretary of
State for Transport on technical options to meet the projected demand

2. In May, 1994 BAA asked the Government to rule out the option for a new
runway at Heathrow

3. BAA is bound by an agreement with West Sussex which restricts the
development of a further runway at Gatwick until 2019