Two London airports have won permission for large increases in the number of flights and passengers they handle.

Stansted was this morning given the go-ahead by the Government to increase flights from 241,000 to 264,000 and raise the number of passengers from 25 million to 35 million annually, in the first major decision by Geoff Hoon since he was appointed Secretary of State for Transport last week.

Hours earlier, London City airport learnt that it had won planning permission to increase flights by about 50 per cent, from 80,000 to 120,000 a year. Passenger numbers are expected to reach 3.2 million next year.

The decisions are likely to enrage green activists, although it remains unclear whether either airport will make full use of their extra capacity for some time to come, with growth in passenger numbers slowing as the UK's economic turmoil deepens.

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Business at Stansted has not grown for two years and Ryanair is parking 16 of its planes based at the airport this winter due to a decline in passenger demand.

Mr Hoon announced in a written statement to Parliament this morning that he was overruling the local planning authority, Uttlesford District Council, which refused permission on noise and environmental grounds two years ago for Stansted to handle more traffic.

BAA, the airport operator, lodged an appeal, which ministers today upheld. A letter from the Department for Communities and Local Government to BAA’s lawyers, setting out the reasons for the change in the planning conditions, said ministers found the impact on health caused by air pollution was “likely to be very small”.

It added: “They agree that there is evidence that the proposal would deliver large direct economic benefits, although they accept that the evidence does not reliably quantify this.”

The decision is entirely separate from Stansted's controversial application to build a second runway. A planning inquiry has yet to begin on that issue.

Stewart Wingate, Stansted’s managing director, said that he was delighted that Mr Hoon and Hazel Blears, the Communities and Local Government Secretary, had granted permission for the next phase of growth at Stansted.

“This secures our future up to 35 million passengers a year," said Mr Wingate."This is clearly great news for passengers and for businesses, located in the local community or across the wider region.”

Matthew Knowles, from the Society of British Aerospace Companies, said: “This is a welcome recognition of the progress that the aviation industry has made in further reducing its impact on the environment. Noise from aircraft is down 75 per cent over the last 30 years and an aircraft’s fuel burn, and therefore carbon dioxide emissions, has been cut by 70 per cent over the last 50 years."

But Uttlesford Council leader Jim Ketteridge said the decision was a blow for the community. “It demonstrates that the Government has failed to listen to the clear message from the people of Uttlesford," he said.

“Residents already find the level of aircraft noise extremely disturbing and allowing BAA to increase the amount of air traffic marks a further erosion of our quality of life, particularly for all those living near Stansted Airport.

“We are very disappointed that the appeal has been allowed but are redoubling our efforts to fight the second runway proposals. We may not have won this battle, but with the help of our local authority partners, we will do everything we can to win the war.”

Norman Baker, Liberal Democrat transport spokesman, described the decision as further evidence that the Government was in the pocket of the aviation industry. “It shows the gaping void between its environmental rhetoric and reality. Ministers like to talk green, but their actions show they are only too willing to increase carbon emissions," said Mr Baker.

London City airport has been growing fast, with passenger volumes rising by more than 20 per cent a year in 2006 and 2007. It was coming close to its limit of 80,000 flights a year, but last night the local planning authority approved a 50 per cent increase to 120,000 aircraft movements annually.

Passenger traffic is forecast to rise from 2.9m to 3.2m this year, but to be flat in 2010. Corporate jet movements are falling and are expected to decline from 15,000 to 14,500 this year.

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