London Luton Airport (LLA) has been given the green light from the UK government to increase capacity from 19m passengers per annum to 32m. The ruling has come in spite of the Planning Inspectorate recommending that the plans be rejected over environmental concerns.

The expansion includes a new terminal building and other infrastructure to allow the airport to maximise use of its single runway.

LLA is owned by Luton Rising, which in itself a wholly owned subsidiary of Luton Council. The airport is operated by an organisation named London Luton Airport Operations Limited (“LLAOL”) which is owned by Spanish airport operator Aena and infrastructure investment firm InfraBridge.

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Transport Secretary Hedi Alexander approved the plans under an ‘Airport Development Consent’ order even though the Inspectorate had said in a report that building the new structures would have a “moderate adverse significant effect on the aesthetic or perceptual characteristics” on Luton and the surrounding areas.

The approval comes in the same week that Stellantis closed the Vauxhall van plant with the loss of around 1,100 jobs. Optimistic projections from the airport’s owner suggest that once fully operational, ten times that number of jobs could be created at the new terminal, unlocking a potential £1.5bn for the economy.

Alberto Martin, Chief Executive Officer, London Luton Airport said: “We welcome today’s approval from Government, which now provides Luton with a generational opportunity to transform the town and our region’s economy. Once complete, these plans will generate an additional £1.5 billion for the economy every year and create up to 11,000 jobs. Our priority now is to finalise a commercial agreement with Luton Council to renew our successful partnership so together we can deliver on the Government’s growth policy, and make the expansion plans a reality as soon as possible. This will put Luton at the heart of a collective mission to achieve sustainable economic growth.