The UK Prime Minister Keir Starmer has unveiled a £1.1 billion ($1.4 billion) investment in London-Stansted Airport (STN) at the International Investment Summit in the British capital city.
Around £600 million ($782 million) will be spent on the previously announced Stansted Airport terminal extension, while £500 million ($651 million) will be used to improve the existing terminal and wider airport estate. The costs involved were not previously known.
In the key announcement, Prime Minister Starmer said on October 14, 2024, the airport extension will secure new air routes to key business and holiday destinations.
The five-year project will generate 5,000 jobs and double Stansted Airport’s annual economic contribution to the UK to £2 billion ($2.6 billion).
The development is being led by Stansted’s owners Manchester Airport Group (MAG) which secured planning permission for the extension in October 2023.
MAG is in the final stages of the procurement process, with construction expected to begin in 2025. The project will take between two and three years to complete.
Part of the plans include a larger security hall, an airfield taxiway upgrade and an overhaul of the gate lounges plus new shops, bars and restaurants.
Other developments include:
- 14.3MW on-site solar farm to supply current and future energy needs.
- New wayfinding kiosks across the terminal.
- Flooring and seating upgrades across satellite two plus new bar area
- Refurbishment of terminal toilet facilities
“Transport is central to this government’s core mission of growing the economy. This is about giving companies like Manchester Airports Group the confidence to invest, boosting regional and national economic growth and supporting the aviation sector while also meeting our existing environmental obligations,” said UK Transport Secretary, Louise Haigh.
Stansted served a record breaking 29.3 million passengers in the year to September 2024, the busiest 12-month period in the airport’s history.
Over the past 12 months, several new airlines have started flying from Stansted for the first time, including Royal Jordanian and Sun Express, plus the return of British Airways.
“Stansted is embarking on an exciting new chapter. We aim to add even more choice of airlines to continue growing our extensive route network that is valued and enjoyed by the millions of passengers who choose to fly from London Stansted every year,” said Gareth Powell, London-Stansted’s Managing Director.
Powell added: “We are unique among major airports in operating a single terminal, which means we can give people a simple, efficient and seamless experience, which we know they value, whether travelling for business, leisure or to visit friends and family. These exciting plans mean we are able to retain all those benefits, while introducing an array of new facilities and giving us the space we need to grow.”
At the UK’s International Investment Summit Prime Minister Starmer plans to sign tens of billions of investment deals to benefit Britain.