ABSTRACT
The proposal to develop a third major London airport at Stansted has long been controversial, both to residents around the site and to advocates of the case for the development of facilities at regional airports in preference to London. In its White Paper last summer the government gave initial approval to the development of a major new terminal at Stansted. It stated, however, that it ‘will expect the BAA to show that the investment will earn an acceptable rate of return’ (Secretary of State for Transport, 1985, para. 5.27). Also in the White Paper – and the ensuing legislation now passing through Parliament – the government announced its intention to privatise Stansted’s owners, the British Airports Authority (BAA).
